India Intends To Impose 10% Tariffs On Imports Of The Thailand Jewelry
After the India gold import tax rate up to 6%, the country on Monday (January 28th, 2013) informed the government of Thailand that they intend to impose 10% import tariff on the Thailand jewelry under the free trade agreement (FTA).
When the India imported jewelry from Southeast Asian countries, Thailand in the Early Harvest Program (Early Harvest Scheme) enjoyed near the zero tariff. With the increase of gold in India import duty, the India government worried that Thailand jewelry exporters will devour the local market, profit from the unequal duties.
India Ministry of Commerce official said: “the negotiations on the free trade agreement are still going on; we have to negotiate with Thailand. We think gold tariff should be in the same line with our local policies. Of course we do not intend to impose a ban on the import side, and we are still waiting for Thailand’s response. ”
India had to stop go wide current account deficit and increase the import tax on gold. But reports said, Thailand jewelry imports accounted for only 0.02% of India total gold imports. But the increase of gold tariffs could accelerate the early harvest plan trend, because the latter will help Thailand gold jewelry import tax reduced to near zero levels.
Federation of India export organization (FIEO) director AjaySahai said, since the Early Harvest Program under the government has frozen rate, it is unable to re impose tariffs, if to do so, India will not be allowed in the free trade agreement negotiations under the conversation from scratch.
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