Recently, India announced the adjustment of import tariffs on some commodities from July 24 and the review plan of the overall tariff structure in the next six months.
MDI import duty cut: India has reduced import duty on diphenylmethane diisocyanate (MDI) by 2.5 percentage points from 7.5% to 5.0%, which is one of the raw materials identified by the government for tariff reduction.
Tariffs on some goods increased: From July 24, the tariff on polyvinyl chloride (PVC) flexible films/banners increased from 10% to 25%, and the tariff on ammonium nitrate increased from 7.5% to 10%.
Tax exemption for critical minerals: India’s finance minister has proposed a complete tax exemption on 25 critical minerals and a reduction in tax rates on two more products in the same category.
Adjustments related to electronic products: It is proposed to eliminate the basic customs duty on oxygen-free copper used in manufacturing resistors.
Government reviews tariff structure: Over the next six months, the Indian government will conduct a comprehensive review of its tariff rate structure to facilitate trade, eliminate tariff inversions and reduce disputes.
Unclear status on BIS certification: It is unclear how the revised basic customs duty structure will affect the implementation of import certification for various chemicals under the Bureau of Indian Standards (BIS).
