According to recent ‘FICCI Survey on Inverted Duty Structure in Indian Manufacturing Sector’, a number of manufacturing sub-sectors continue to face inverted customs duty structure that is eroding their competitiveness against lower-duty finished product imports and discouraging domestic value addition.
In its report, FICCI said that various products spread across six manufacturing sectors have reported duty inversion, i.e. the import duty applicable on the finished product is lower than the import duty on the raw material or intermediate product. These sectors include capital goods (like boilers, pressure vessels, etc.), cement, electronics and electricals, rubber products (including tyres), minerals and textiles.
The Report, has been submitted to the concerned authorities, including Tariff Commission and Department of Industrial Policy and Promotion (DIPP) for necessary action, said FICCI. FICCI delegation of industry members has had several meetings with Tariff Commission and submitted detailed data required for carrying out valuation studies for different sectors.
Read the full text of the report below.
