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EU is planning to take India to the World Trade Organisation if New Delhi does not reduce taxes on wines and spirits brought from Europe.
Michael Mann, spokesperson for the EU Agriculture and Rural Development, said "We are trying to negotiate with India on the wines and spirit issue... We won't mind going to the WTO again".
In 2007, India had reduced the extra customs duty that was levied on imports (which were about 150% of value of the imported items), but at the same time increased the basic customs duties from 100% to 150%.
Mann told the European Union wants to "get rid of discriminatory tariff formula" imposed by India, especially at the state level.
European Commission had dragged India to WTO in the year 2007 also in order to get rid of its grievances, which it referred to as denial of 'national treatment' to spirits brought in from Europe.
According to national treatment rules, the imports have to be given same treatment as domestic products.
The consultation procedure of the WTO pertaining to the issue was adjourned after New Delhi adopted some corrective measures in 2007. Nevertheless, the 27-nation bloc which makes some of the top-notch wines and Scotch whisky in the world is not fully content due to hike in basic duty.
Apart from the import duties, Indian states such as Tamil Nadu, Goa, and Maharashtra, which are the highest customers of imported spirits and wines in India, levy special charges on these items. The Economic Times
October 15, 2009
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