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Wednesday, June 19, 2024

Government maintains 50% MFN duty, lowers additional 20% duty on US apples

India has decided to lower the additional 20% duty on US apples, allowing the current MFN duty of 50% to remain. The US apple industry hopes this will help regain market share in India. However, some Indian growers worry about a potential flood of cheaper US apples.

The Indian government has decided to lower the additional 20% duty on US apples, but the current MFN duty of 50% will still apply. As a result, apples from the US will continue to have a higher import duty than apples from other nations. A trade agreement between India and the US included the removal of the additional 20% duty. The US consented to restore market access for Indian steel and aluminum products in return for the removal of the duty on apples.

The removal of the additional duty, according to the Indian government, won’t have any detrimental effects on domestic apple producers. They contend that only apples of the highest quality from the US will be imported because only these can compete with apples from India at the current import duty of 50%.

The US apple industry, which said the decision will help them reclaim market share in India, has praised the decision. However, some Indian apple growers have voiced worries that the decision might cause a flood of less expensive US apples into India, harming their businesses.

But it is evident that the Indian government is dedicated to lowering trade restrictions and enhancing market accessibility for all nations.

The import tax on apples from the US in India is summarized as  below:

If Type of duty  is Additional duty (imposed in 2019) Rate is 20%

If Type of duty  is MFN duty (still in place) Rate is 50%

The import duty on US apples is 70%. This is higher than the 30% import duty on foreign apples.

Conclusion

India has decided to lower an additional 20% duty on US apples, allowing the current MFN duty of 50% to remain. This move is part of a trade agreement between India and the US, which allowed the US to restore market access for Indian steel and aluminum products in exchange for the removal of the apple duty. The Indian government claims that the removal will not negatively impact domestic apple producers, as only the highest quality apples from the US will be imported. The US apple industry has praised the move, while some Indian growers worry about a potential flood of cheaper US apples. The Indian government is committed to reducing trade restrictions and improving market accessibility.

Taushif Patel

Taushif Patel is a Author and Entrepreneur with 20 years of media industry experience. He is the co-founder of Target Media and publisher of INSPIRING LEADERS Magazine, Director of Times Applaud Pvt. Ltd.

Taushif Patelhttps://taushifpatel.com
Taushif Patel is a Author and Entrepreneur with 20 years of media industry experience. He is the co-founder of Target Media and publisher of INSPIRING LEADERS Magazine, Director of Times Applaud Pvt. Ltd.

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