INDIAN GOODS
TO GET DUTY SOPS IN CHINA
In a move that will boost Indian exports
across the Great Wall, the Chinese government has granted
duty concessions to Indian goods categorised under 217 tariff
lines. The concessions are part of the Bangkok agreement,
under which India has also granted reciprocal tariff concessions
to China.
The benefit to India goes beyond 217 items
(in eight-digit classification) as the concessions already
extended by China bilaterally with Bangladesh, the Republic
of Korea and Sri Lanka will also be available to Indian goods.
In effect, the total number of items eligible for tariff concessions
for export to China will be more than 700. The concessions
will be available if the rules of the origin conditions are
fulfilled. The preferential tariff rates for trade between
India and China under the Bangkok agreement are effective
from January '04.
India has extended the concessions on
106 items corresponding to 188 tariff lines at six-digit classification,
which it has already granted to Bangladesh, Sri Lanka and
the Republic of Korea. To be eligible for preferential duty
access to China under the Bangkok agreement, the goods shall
be accompanied by a 'certificate of origin' to this effect
issued by an authorised agency.
Imports from China on the items would
be available subject to the fulfilment of the Indian government's
rules of origin. China will be maintaining an average margin
of preference, which it offered on the basis of the '03 MFN
(most favoured nation) rates for 217 tariff lines at 13.5%
of the prevalent MFN tariffs every year.
The Bangkok agreement is an initiative
under the Economic and Social Commission for Asia and the
Pacific (ESCAP) for trade expansion through the exchange of
tariff concessions among developing country members of the
ESCAP region.
The agreement was signed on July 31, '75
and remained operational among four countries, namely, Bangladesh,
India, the Republic of Korea and Sri Lanka until April '00.
The developing country members and associate members of ESCAP
are eligible to accede to the agreement.
China's accession to the Bangkok agreement
was approved by a consensus of the member countries in April
'00.
China completed the formalities related
to its accession to the Bangkok agreement in April '01.
China concluded its bilateral negotiations
for the exchange of tariff concessions with Bangladesh, Sri
Lanka and the Republic of Korea in '02. India concluded its
bilateral negotiations for the exchange of tariff concessions
with China in '03.
