Higher Import Duties On 29 U.S. Products To Be Effective From Sept. 18
The government has extended by 45 days the deadline for the imposition of higher customs duties on 29 products, including almond, walnut, and pulses, imported from the U.S.
The duties would now come into effect from Sept. 18, according to a notification of the Finance Ministry.
As per a June notification, the duty hike was to come into effect from today but some positive expectations from the ongoing talks between the two countries have led to this 45-day extension, according to sources.
In a notification issued late last night, the Finance Ministry replaced the Aug. 4 date with Sept. 18.
The Commerce Ministry had suggested to the Department of Revenue to amend the notification for further extension of retaliatory measures for another 45 days.
As per the notification, import duties on 29 American items would be hiked.
While import duty on walnut is to be hiked to 120 percent from 30 percent, duty on chickpeas, Bengal gram (chana) and Masur dal will be hiked to 70 percent from 30 percent. Levy on lentils will be hiked to 40 percent from 30 percent.
The duty hike move by India was in retaliation to the March 9 decision of U.S. President Donald Trump to impose heavy tariffs on imported steel and aluminium items, a move that has sparked fears of a global trade war.
India has said the duty imposed by the U.S. has affected steel exports by $198.6 million and aluminium shipments by $42.4 million.
India has also dragged the U.S. to the World Trade Organization's (WTO) dispute settlement mechanism over the imposition of import duties on steel and aluminium.
India exports steel and aluminium products worth about $1.5 billion to the U.S. every year. Exports to the U.S. in 2016-17 stood at $42.21 billion, while imports were $22.3 billion.
Other products which would attract higher duties include boric acid, phosphoric acid, diagnostic reagent, flat-rolled products of iron, certain flat-rolled products of stainless steel.