India decides to remove additional customs duties on eight US products

Following recent Prime Minister Narendra Modi's State visit, India has decided to remove additional duties on US products, including chickpeas, lentils, and apples. These duties were initially imposed in 2019 in response to the US increasing tariffs on specific steel and aluminium products, government sources said.

The two countries have agreed to resolve six World Trade Organization (WTO) disputes and eliminate these retaliatory tariffs on certain US products. The US, in 2018, imposed an import duty of 25 per cent on steel products and 10 per cent on certain aluminium products due to national security reasons. In retaliation, India in June 2019 imposed customs duties on 28 American products.

The duties on these eight US-origin products would revert to the



currently applied most-favoured-nation (MFN) rate after India notifies the rescinding of additional duties, one of the sources, who is aware of the development, said. The tariffs would end in 90 days.

As part of the agreement, India will be removing additional duty on chickpeas (10 per cent), lentils (20 per cent), almonds fresh or dried (Rs 7 per kg), almonds shelled (Rs 20 per kg), walnuts (20 per cent), apples fresh (20 per cent), boric acid (20 per cent), and Diagnostic Regents (20 per cent), the sources added.

The duties were increased on 28 US products in 2019 in retaliation to the US decision to increase duties on certain steel and aluminium products. US lawmakers and industry leaders have welcomed the announcement of an agreement with India to end these duties.