India hikes duties on 28 items imported from US
22 Jun 2018
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India has increased customs duty on 29 products imported from the United States, including pulses and iron and steel products, as a retaliatory action against the tariff hike by Washington.
The duty hike would come into effect immediately for 28 products, while for artemia, a kind of shrimp, the rate hike would be effective from 4 August, the finance ministry said in a notification.
The move came a day after the EU's decision to charge higher import duties on a range of US products. India is now in line with the EU, Canada and China in taking up President Donald Trump’s tariff challenge.
India had also complained to the World Trade Organisation (WTO) about US duties last month after the US slapped import duties on steel and aluminium imported from India and some other countries.
Announcing the decision late on Wednesday, the commerce ministry said higher import duties on some varieties of apples, almonds, chickpeas, lentils, walnuts and artemia, most of which are purchased from the United States.
India also raised duties on some grades of iron and steel products imported from the US as New Delhi failed to get exemption from the US impost of import duties on steel and aluminium.
As per the finance ministry notification, the import duty on chickpeas, Bengal gram (chana) and masur dal has been increased to 70 per cent from 30 per cent earlier, while that on lentils has been hiked to 40 per cent from 30 per cent.
Shelled almonds imported from the US will now attract import duty at Rs120/kg as against Rs100/kg earlier. Almonds in shell will attract import duty at the rate of Rs42/kg as against Rs35/kg.
Import duty on walnut in shell will attract customs duty at the rate of 120 per cent as against 30 per cent earlier. While apples will attract import duty of 75 per cent as against 50 per cent earlier.
The duty on boric acid has been hiked to 17.50 per cent, while the same on phosphoric acid has been raised to 20 per cent from 10 per cent each earlier.
Import duty on diagnostic reagents has been doubled to 20 per cent, while binders for foundry moulds has been hiked to 17.5 per cent.
Flat rolled products on iron has been raised to 27.50 per cent from 15 per cent earlier, while certain flat rolled products on stainless steel would now attract 22.50 per cent duty as against 15 per cent earlier.
Duty on artemia, a kind of shrimp, has been raised to 30 per cent with effect from 4 August.
Last week, India had submitted to the WTO a list of 30 items on which it proposed to raise customs duty by up to 50 per cent. The list also had mentioned a proposed hike in customs duty on specified motorcycles, which primarily included Harley Davidson and Triumph.
For automobiles and earth moving equipment, SIM socket/other mechanical items (metal) for use in manufacture of cellular mobile phones, the duty has been hiked to 25 per cent from 15 per cent earlier.
The duty hike by India would have an equivalent tariff implications for the US.
On March 9, US President Donald Trump imposed heavy tariffs on imported steel and aluminium items, a move that has sparked fears of a global trade war.
Rising trade tensions between the United States and some major economies have threatened to derail global growth.
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