India has decided to implement the notification for increasing Customs duty on American imports after the US decided to discontinue the Generalised Services Preference (GSP) programme, as reported earlier.
The notification, issued a year ago, shall come into force from June 16, 2019, and will attract hiked customs on 29 US products, including almonds, walnuts and pulses, amongst others.
A notification in this regard will be issued by the finance ministry soon.
The increased tariffs shall be applicable from June 16, as the date of the notification for the extension of the original notification issued by the Central Board of Indirect Taxes and Customs ends on June 15, 2019.
In June 2018, India decided to hike the import duty on 29 products imported from the US in response to the duty hike by the US on steel and aluminium imported from India.
For the past one year, the tariffs were held by the Government of India, as the two sides were continuously engaged in negotiations for a resolution of the matter. The deadlines were, however, extended eight times in the last one year, in the hope of a resolution.
But recently, the move by the US government to end the GSP programme for India completely provoked India to implement the notification after one year of its issuance.
The duty has been hiked to 60 percent for chickpea and Bengal gram, while for lentils it would be 30 per cent, which is additional 10 percent in each case.
Not only agri produce, but on sea products as well, the duty has been raised. The June 2018 notification stated that artemia, a kind of shrimp, originating from the US shall be placed under 15 percent duty, which was five percent previously.
Besides, the other products that will be affected by the Indian hike in tariffs include additional duty of 20 per cent on almonds (fresh or dried), and 25 percent on fresh apples (which now stands at 50 percent).
