Schwab: Removal of alcohol duties in India a “positive step”

Schwab: Removal of alcohol duties in India a “positive step”

Schwab: Removal of alcohol duties in India a “positive step”

Related Stories •   India drops customs duties on imported alcohol

U.S. Trade Representative Susan C. Schwab said Monday that India's stated plan to withdraw additional duties on beer, wine and distilled spirits would be a 'positive step' toward ending a dispute between India and the European Union and the United States, which are challenging India in World Trade Organization dispute settlement proceedings.
   On July 4, India's Central Board of Excise and Customs agreed to drop customs duties of up to 150 percent on imported beer, wine and liquor in a bid to appease U.S. and EU officials, who have accused the Indian government of assessing overly steep duties on alcoholic beverages.
   'We are studying India's recent announcement that it has withdrawn the additional duty on imports of alcoholic beverages,' Schwab said. 'Withdrawal of this duty would be a positive step in addressing U.S. concerns. What we are seeking is a level playing field, consistent with India's WTO commitments.'
   The additional duty established tariffs — applied on top of the basic customs duties — range from 20 percent to 75 percent ad valorem on imports of beer and wine, and from 25 percent to 150 percent ad valorem on imports of distilled spirits. An additional 4 percent duty, calculated on top of the additional duty and basic customs duties on alcoholic beverages, has also been applied, Schwab's office said. Taken together, these duties have resulted in tariffs on alcoholic beverages ranging from about 150 percent to 550 percent — far in excess of India's WTO commitments. In the WTO, India committed that its bound tariffs on alcoholic beverages would not exceed 150 percent.