New Delhi, India: India has been placed in the lower tariff category under the United States’ final Section 301 measures on forced labour, with an additional 10% duty on certain imports replacing the 12.5% rate proposed earlier, according to the Ministry of Commerce and Industry.
The Office of the United States Trade Representative (USTR) announced the final measures on July 23 following its investigation into the policies and practices of 60 economies, including India, concerning the prohibition of imports linked to forced labour.
Under the final decision, imports from India covered by the action will attract an additional 10% ad valorem duty. The revised rate is lower than the 12.5% duty proposed in June, reflecting the outcome of consultations between the Government of India and the USTR during the investigation process.
According to the ministry, Indian authorities participated in written submissions, in-person consultations and public hearings throughout the review. The government said these engagements contributed to India being placed in the lower tariff tier under the final framework.
The impact of the measure is expected to vary across export categories. A significant portion of India’s exports to the United States, including generic pharmaceuticals, smartphones and several other specified products, will remain outside the scope of the additional duty as they already attract no extra tariffs under the Section 301 action.
Products already covered under separate Section 232 measures, including steel, aluminium and auto parts, are also excluded from the additional 10% levy. Based on these exemptions, the ministry estimates that around 45% of India’s exports to the United States will remain outside the scope of the new Section 301 duty, while the remaining 55% will be subject to the additional 10% tariff.
The ministry also noted that the textile-specific mechanism referenced in the final measures is yet to be established and operationalised. Discussions with the United States on the issue are continuing as part of negotiations for the proposed India-US Bilateral Trade Agreement.
The government said it remains committed to working with the United States towards an early conclusion of the bilateral trade agreement announced earlier this year.
Source: This article is based on an official press release issued by the Press information Bureau, Ministry of Commerce & Industry, Government of India
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