Overhaul of import tariff structure, customs processes to cut trade costs, boost manufacturing, exports: GTRI

Key Highlights

• The think tank also pitched for eliminating inverted duty structures, where inputs are taxed more heavily than finished products, quietly eroding domestic manufacturing competitiveness.
• Extreme tariffs, such as the 150% duty on alcohol, should be rationalised, GTRI said, arguing that such rates encourage evasion while delivering negligible fiscal gain.
• Equally important, tariff reform should be based on total import duty, not just headline basic customs duty.
• Importers face a cumulative burden of cesses, surcharges and trade remedies, making the effective tariff far more complex than official rate schedules suggest, it said.
• A report by GTRI said that India’s merchandise trade has crossed $1.16 trillion, and nearly 29% of gross domestic product flows through customs clearances.