INDIA LOWERS CUSTOM DUTIES ON ALCOHOLIC IMPORTS FROM EU. THE ACCORD WITH NEW DELHI GOVERNMENT TO LEVEL TAX RATE THRESHOLD AT 150%

The contentions between India and the European Union have ended on a positive note: India has removed its exasperated customs duties on European alcoholic products, and Europe has asked that the WTO close the case that was officially opened against India last April after mediations - which had begun on behalf of the UE Commission in December 2006 because of India’s incompatibility with World Trade organization measures - failed.

The case was opened due to a European investigation in 2005 of international commercial barriers.
A review was made of discriminatory measures against the access of European goods that, through local and state taxes, caused an inflation of wine taxes of up to 264% and up to 550% on the original price of other alcoholic beverages. After the latest changes made by the government in New Delhi, tax rates will have a maximum threshold of 150%.
“The Union hears of the news with satisfaction” – declared EU commerce spokesperson, Peter Powell – “and this decision brings us closer to our goals”.

The Commission will continue to be on the watch out, making sure that pacts are maintained and that new taxes on European products are not applied, and in which case, WTO regulations allow for the reopening of the case that will be kept in stand-by for one year.