US approaches WTO against India’s additional duty measures

US approaches WTO against India’s additional duty measures

ISLAMABAD: The United States has approached the World Trade Organization (WTO) for dispute consultations regarding additional duties imposed by India on various imported goods from the US.

A statement issued by the WTO said that the US had requested WTO dispute consultations with India concerning additional duties applied by India on certain imports of US goods.

The request was circulated to WTO members on July 04.

The United States claims that the additional duties, which India imposed through a series of notifications issued between June 2018 and June 2019, are inconsistent with provisions of the WTO’s General Agreement on Tariffs and Trade (GATT 1994) by unfairly discriminating against US imports vis-à-vis those from other WTO members and by according less favourable treatment to US goods than that provided for in India’s schedule of concessions.

The US authorities a day earlier submitted a request to the WTO for consultation with India with respect to India’s imposition of additional duties with respect to certain products originating in the United States.

“India does not impose the additional duties measure on like products originating in the territory of any other WTO Member,” according to the US.

India also appears to be applying rates of duty to US imports greater than the rates of duty set out in India’s schedule of concessions.

The US submitted the legal instruments through which India imposes the additional duties measure include the following:

Government of India, Ministry of Finance, Department of Revenue, Notification No. 48/2018 – Customs, June 20, 2018;

Government of India, Ministry of Finance, Department of Revenue, Notification No. 49/2018 – Customs, June 20, 2018;

Government of India, Ministry of Finance, Department of Revenue, Notification No. 56/2018 – Customs, August 3, 2018;

Government of India, Ministry of Finance, Department of Revenue, Notification No. 62/2018 – Customs, September 17, 2018;

Government of India, Ministry of Finance, Department of Revenue, Notification No. 77/2018 – Customs, November 1, 2018;

Government of India, Ministry of Finance, Department of Revenue, Notification No. 80/2018 – Customs, December 15, 2018;

Government of India, Ministry of Finance, Department of Revenue, Notification No. 03/2019 – Customs, January 29, 2019;

Government of India, Ministry of Finance, Department of Revenue, Notification No. 06/2019 – Customs, February 26, 2019;

Government of India, Ministry of Finance, Department of Revenue, Notification No. 11/2019 – Customs, March 29, 2019;

Government of India, Ministry of Finance, Department of Revenue, Notification No. 14/2019 – Customs, May 1, 2019;

Government of India, Ministry of Finance, Department of Revenue, Notification No. 15/2019 – Customs, May 14, 2019;

Government of India, Ministry of Finance, Department of Revenue, Notification No. 16/2019 – Customs, June 15, 2019;

Government of India, Ministry of Finance, Department of Revenue, Notification No. 17/2019 – Customs, June 15, 2019;

as well as any amendments, replacements, related measures or implementing measures.

The additional duties measure appears to be inconsistent with: Article I:1 of the GATT 1994, because India fails to extend to products of the United States an advantage, favor, privilege or immunity granted by India with respect to customs duties and charges of any kind imposed on or in connection with the importation of products originating in the territory of other Members, and Article II:1(a) and (b) of the GATT 1994, because India accords less favorable treatment to products originating in the United States than that provided for in India’s schedule of concessions.

The additional duties measure appears to nullify or impair the benefits accruing to the United States directly or indirectly under the GATT 1994.