Page 54 - ELT_1st July 2020_Vol 373_Part 1

A28 EXCISE LAW TIMES [ Vol. 373

Mandatory licensing norms may also be put in place for vast segments of
India’s imports that have not yet been properly categorised and remain immune
to policy measures, according to sources.
Through the move, the Commerce Ministry plans to restrict imports cost-
ing to ` 4 trillion, primarily from China. Currently, thousands of import catego-
ries are labelled “others” in the official trade classification handbook. Many of
these bring in goods worth ` 100 crore or more. But, little data is available on
what these are.
Exports boost
On the other hand, the Government is seeking to boost exports to the na-
tion. “China has been very effectively using non-tariff barriers to curb imports
that it wants to avoid. On the other hand, it also uses these restrictions as a politi-
cal tool to control bilateral relations,” said Biswajit Dhar, Senior Trade Policy
Expert and Professor at Jawaharlal Nehru University.
In the last financial year, India’s highest export earners to China were
organic chemicals, refined petroleum, cotton, plastics, and iron ore. These, along
with other raw materials, constituted for more than 70 per cent of exports. “Chi-
na is a State enterprise-driven economy and most imports continue to be ordered
by State companies. Issues of market access, primarily in agri commodities and
pharma products, persist. These have to be addressed first,” said Ajay Sahai,
Director General, Federation of Indian Export Organisations.
[Source : Business Standard, New Delhi, dated 18-6-2020]

India set to erect a great wall against Chinese Companies —
High-level meeting soon to discuss extent of mesures

Government plans to restrict Chinese investments in infra, levy higher import tariffs and
review FTAs
India is considering multiple, comprehensive measures to curtail the
country’s economic reliance on China, targeting trade, investment and project
services in the wake of border hostilities. These are likely to include restrictions
on participation by Chinese companies in Government contracts and infrastruc-
ture projects, higher tariffs on imported Chinese Finished goods as also a closer
review of free trade agreements that are being used by the country to export
goods indirectly into India.
A high-level meeting, likely to be attended by key stakeholder Ministers
and top officials from the Prime Minister’s Office (PMO), is expected soon to
discuss the details and the extent of measures, Government officials told ET.
“Measures are being examined... All pros and cons of how and when as
also their repercussions on Indian businesses will be looked into,” said a Gov-
ernment official.
Steps to curb imports from China
On the trade side, there could be tariff as well as non-tariff measures to
discourage imports from China that added up to $ 70 billion in FY19, more than
from any other country. India had a $ 53 billion trade deficit with China in FY19
and attempts to address it have not made much progress. Chinese companies
have a big share of India’s mobile phone and electronics markets.

EXCISE LAW TIMES  1st July 2020  54