Overhaul of import tariff structure, customs processes to cut trade costs, boost mfg, exports:...

Key Highlights

• Extreme tariffs, such as the 150 per cent 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 the Global Trade Research Initiative (GTRI) said that India’s merchandise trade has crossed USD 1.16 trillion, and nearly 29 per cent of gross domestic product flows through customs clearances.
• In that context, the report noted that even modest inefficiencies now impose economy-wide costs, raising input prices, delaying shipments and weakening export competitiveness at a time when global companies are reassessing sourcing locations amid geopolitical fragmentation.