12

14

Tariff quota duties are set on imports of garments and tea from Sri Lanka.

Reduced or suspended rates apply to goods such as raisins from 105% to 100%, liquor and spirits from 182% to 166%; electronic components covered by the ITA (Information Technology Agreement); pharmaceuticals and biotech i.e. all drugs and materials; fiber optic cable from 25 to 20% and specialized materials used in its manufacture from 30 to 15%.  In addition to the above, duty remission and duty drawbacks also apply to qualified duty inputs imported by export oriented industries.  In line with duty exemption scheme, the following goods can be imported free of duty: raw materials, components, and consumer products, processed food, footwear, toys and telecommunications products, fertilizers, mining equipment, wood products, jewelry, camera components, paper and paperboard, ferrous waste and scrap, computers, office machines and spares, textile machinery and spare parts, hand tools, soft drinks, cling peaches, vegetable juice and canned soup.

As a rule, duty exemption proceeds are established for registered importers involved in export oriented industries.

India with Bangladesh, Korea, Laos, Sri Lanka and Thailand belong to the Bangkok Agreement established in 1975, Asia first multi-member preferential trade agreement (PTA) joined by China in 2001, revitalizing thus the Agreement.  It grants concessions on certain agricultural and manufactured goods, chemicals and minerals.

On 8 of October 2003, India signed an economic cooperation framework with ASEAN members, i.e. Brunei, Burma, Cambodia, Indonesia, Laos, Malaysia, the Philippines, Singapore, Thailand and Vietnam.  The economic framework calls for tariff reduction or elimination by 2011 for nonagricultural imported goods between India and Brunei, Indonesia, Malaysia, the Philippines, Singapore and Thailand, and by 2016 on goods traded between India and Burma, Cambodia, Laos, and Vietnam.

India and MERCOSUR (Argentina, Brazil, Paraguay and Uruguay) signed on 17th June 2003 in Asuncion, Paraguay, a framework agreement which grants parties, reciprocal tariff reductions for the moment, with a view of arranging later, a free trade area between the two blocks.

India-SACU (South Africa, Lesotho, Swaziland, Botswana and Namibia), the Southern African Customs Union, met in September 2004, finalizing a framework agreement which provides for a limited tariff concession first, before graduating to a Free Trade Agreement later.

Among other agreements, India concluded in 1991 with Nepal a bilateral agreement renewable every five years.  While the agreement allows duty free entry of Nepalese goods into India, it grants Indian goods, a 20% duty reduction of imported goods into Nepal.

India and the European Union Trade Cooperation Agreement grants equal most-favored nation treatment to goods of European origin.

India and Sri Lanka free trade agreement in force as of 1 of March 2000, allows India to phase out duties on most goods from Sri Lanka since 1 of March 2003, except on garments which are levied at reduced rates, while tea and textiles are assessed at established tariff rate quotas.  As a counterpart, Sri Lanka will eliminate duties from Indian goods by 1 of March 2008.  Nonetheless, a list of goods excluded from the Agreement is maintained by each country.

India and Thailand framework agreement was signed on 9 October 2003, with the aim of establishing a free trade area by 2010 between the two countries.

Among the many bilateral trade agreements, India signed major trade agreements with Russia, China, Myanmar, Nepal, Kazakhstan, Mauritius, Seychelles and Tonga.

India signed with Afghanistan on 6 March 2003, a Preferential Trade Agreement (PTA) which provides reduction of tariffs and promotes free movement of goods between the two countries.

21

A  special additional duty (SAD) introduced in the fiscal budget of 1998-1999 is levied at the rate of 4% on most imports except on duty free ones.

The 2004-2005 Budget announced on 8 of July 2004 has established a levy on imported goods of a 2% education surcharge based on the c.i.f. value with customs and excises taxes.

34

Imports of goods into India, valued at prices lesser than in the country of origin, are subject to antidumping measures laid in the Customs Tariff Act with a view to protecting domestic production.

The following antidumping measures are in force against the following products: acrylic fibers on 18 of July 2000, analgin on 8 of October 2001, potassium permanganate on 1 of November 2001, paracetamol on 27 of March 2002, sodium nitrite on 29 November 2002, caustic soda on 14 of November 2003 and green veneer tape on 9 of February 2004.

43

The Indian currency, the Rupee is convertible on current account transcations as capital account transactions carried out by foreign investors; however Indian firms and individuals remain subject to capital account restrictions.

Finance measures such as exchange control management and regulation are under the responsibility of the Reserve Bank  of India (RBI) thanks to the 1973 Foreign Exchange Regulation Act (FERA) superseded by the Foreign Exchange Management Act (FEMA) of December 1999.

61.00

Licensing and discretionary controls over imports have been gradually replaced by the India's Ex-Im policy regulation of the Open General License (OGL), which means that goods are importable without restrictions and without a license as long as they are regulated by the rules of the general provisions regarding imports and exports, or any other law being in force.  Importers must obtain a number from the Director General of Foreign Trade in the Ministry of Commerce and Industry, for the importation of goods.

Importation of food ingredients and additives with genetically modified or bioengineered organisms must be authorized by the Genetic Engineering Approval Committee, the authorization being valid for four years.

An approval from the Ministry of Agriculture is required for the importation of primary agricultural products, and an import permit issued by the same Ministry is required for list of plants, plant products and seeds, and is valid for six months, under the Quarantine Order which is in effect since 1, of January 2004.

63.00

Import prohibition of fresh fruits and vegetables coated with edible and non-edible waxes, mineral oils, and colors.

63.71/72

An importation ban is set on tallow, fat, and oils of animal origin, and on animal rennet, as on lard stearin, lard oil, oleostearin, oleo oil and tallow oil, not emulsified or mixed or otherwise prepared.

Due to the outbreak of Transmissible Spongiform Encephalopathy (TSE) diseases, the Ministry of Agriculture, Department of Husbandry and Dairying prohibits the importation of live cattle, buffalo, sheep and goat, bovine, ovine and caprine embryo or ova, fresh meat, meat products, tissue, organs and meat and bone meal (MBM) or ruminant origin, as pet food products or ingredients of ruminant origin.

71.1

The following imports are canalized imports as they are carried out by state authorities as follows:

- Food Corporation of India is responsible for importation of wheat and meslin other than seed quality;

- State Trading Corporation and Hindustan Vegetable Oils Corporation for imports of soya beans, whether or not broken;

- Minerals and Metals Trading Corporation of India Limited, are responsible for imports of ammonium sulphonitrate, such as mineral or chemical fertilizers, nitrogenous;

- State Trading Corporation of India Limited is in charge of imports of palm stearin excluding crude palm stearin, i.e. industrial monocarboxylic fatty acids, acid oils from refining, industrial fatty alcohols;

- State Trading Corporation of India Limited and Hindustan Vegetable Oil Corporation Limited, deals with importation of RBD palm stearin the kind of industrial monocarboxylic fatty acids, acid oils from refining, industrial fatty alcohols.

81.11

Certificate of cleanliness issued in the country of origin, endorsed by a practicing physician, with the letters "MD" appearing after the signature is required for importation of used clothing.

Registration requirement with information detailing ingredients that go to the making of drugs of imported pharmaceuticals and any other useful information, clinical tests etc., with the Ministry of Health since 1 of January 2003.

The Department of Health, Ministry of Health and Family Welfare, through the Prevention of Food adulteration Act, set pesticide/insecticide limits on some food articles.

81.12

81.13

A phytosanitary certificate issued by the authorities of the country of goods, and stating that they are free from pests as specified by the Indian Ministry of Agriculture, is required for importation of all primary agricultural products; in addition, for goods requiring an import permit, the permit number must show on the phytosanitary certificate.

Solid wood, packing materials must be accompanied by a phytosanitary certificate proving that they have undergone required treatment, or with an ISPM certification mark, in compliance with the amendment to the 2003 Plant Quarantine Order, in force as of 1 of November 2004.

Importation of leaf tobacco require a general sanitary certificate for all plants, and a special one that states that tobacco is free from the Ephestia Elutella or that the country of origin is free from the diseases.

India, Plant Quarantine, Regulation of import, Second Amendment Order, 2005, details the modifications made in the previous Order, 2003, and seeks to modify the phytosanitary  status and risk mitigation measures required in case of import of specified plants, plant materials, in compliance with the International Standards on Phytosanitary Measures (ISPM).

Unprocessed solid wood packing materials that include hay, straw, wood shavings, wooden pallets, sawdust, peat moss, dunnage mats, must be treated by one of the following methods laid in the International Plant Protection Convention's International Standards for Phytosanitary Measures concerning wood packaging material (ISPM 15), or any other specified method such as heat treatment, methyl bromide fumigation, or chemical impregnation.

As a rule, shipments of goods must be marked in large lettering using indelible ink or paint directly on the container, with trade names revealing the nature of goods.  Explosives should be marked consequently with the handling ways: "Upside", "Downside", "Fragile".

Imported goods to India, are subject to the following labeling requirements: goods must be labeled in English or Hindi with the name and address of the importer, generic or common name, net quantity in terms of standard weights and measures, in metric system, production and self-life dates etc...

As for food products, the above information is required, in addition to importation such as name, trade name, or description of the good, list of ingredients in descending order of composition by weigth or volume, name and address of the manufacturer, importer, vendor, or packer, net weigh, number or volume of contents, distinctive batch, lot, or code number, and the country of origin.  Besides food products claiming to be enriched must be labeled accordingly with the added nutrients. And since 25 June 2005, food products with artificial sweeteners must indicate so.

The following infant foods: condensed milk, milk powder, blended vegetable oils, and other food products required special labeling requirements.

Irradiated food labels must show the licence number and the purpose of such method; enriched products with nutrients must indicate on the labels the quantities of minerals, proteins, or vitamins used.

A symbol appearing on the principal display panel near the name of the food product, and in contrast with the label's background must be affixed on vegetarian food products in a green color filled circle inside a square with a green outline, and on none vegetarian ones excluding dairy products, a brown color-filled circle inside a square with a brown outline.

Pharmaceuticals are subject to special labeling requirement that must bear the trade name if conspicuous than the proper name, with vertical red line running down the body of the label on the left side, with the line at least one millimeter wide with the "warning" mention "to be sold upon medical prescription" and the claims that the drugs have been approved by the Ministry of Health.

Waterproof, zinc or tin-lined packaging are recommended for shipments of goods to India.

Quarantine and inspection requirements for plants, plant product and seeds.  Furthermore, a pest risk analysis is compulsory for plant products liable to import permits.

Random test of food samples at ports of entry, and systematic analysis since 16 of June 2004 of high risk food products such as edible oils and fats, pulses and pulse products, cereals and cereal products, milk powder, condensed milk, food colors, food additives, natural mineral water, packaged drinking water, tea and coffee, and cocoa butter equivalents or substitutes.

Unprocessed solid wood packing materials that include hay, straw, wood shavings, wooden pallets, sawdust.  Peat moss, dunnage mats, must be treated by one of the following methods laid in the International Plant Protection Convention's International Standards for Phytosanitary Measures concerning wood packaging material (ISPM 15), or any other specified method such as heat treatment, methyl bromide fumigation, or chemical impregnation.

Since 1 of January 2004, imported plants, plants products and seeds are authorized only through specified ports of entry in conjunction with the Plant Quarantine Order.

Natural rubber, is allowed entry only by customs ports at Calcutta and Vishakhapatnam.

Imports of second hand automobiles are allowed to enter India, only through customs port at Mumbai.

SGS, Société Générale de Surveillance, an internationally recognized laboratory, carries out inspection and certification required for importation of goods to India.

At the time of customs clearance, importers of used equipment must furnish an inspection certificate issued by an internationally known inspection and certification agency from the country of origin, guaranteeing thus, quality with regard to price, for goods exceeding Indian rupees 10 million c.i.f.

Imported secondhand automobiles require pres-shipment and post shipment certification.

A pre-shipment inspection certificate became compulsory after 25 of October 2004 for all imports of metal scrap in unshredded, compressed or loose form.