in , ,

ZT EXCLUSIVE: Finance Ministry announces exemption of Afghan apples from customs duty

Ziraat Times Exclusive

This report has been updated at 4:10 PM

Srinagar, Feb 7: In a significant new development, the Union Finance Ministry has issued a notification exempting select imports from five neighboring countries from the customs duty announced in the Union Budget 2021-22.

Apples originating from Afghanistan, and entering India through the Wagah-Attari borders, have also been declared exempt from all customs duty.

A corrigendum issued by the Deputy Secretary to the Government of India, Ministry of Finance, (Revenue Department), dated 5 February, 2021, a copy of which has been obtained by Ziraat Times, states:

“In exercise of the powers conferred by sub-section (1) of section 25 of the Customs Act, 1962 (52 of 1962),….., except as respects things done or omitted to be done before such supersession, the Central Government, being satisfied that it is necessary in public interest so to do, hereby exempts all goods other than those mentioned in the ANNEXURE to this notification, from the whole of the duty of customs leviable thereon under the First Schedule to the Customs Tariff Act, 1975 (51 of 1975), when imported into India from a country listed in APPENDIX to this notification.

The countries declared exempt in the ANNEXUE from the whole of the duty of customs are:

People’s Republic of Bangladesh, Kingdom of Bhutan, Republic of Maldives, Nepal and Islamic Republic of Afghanistan.

The notification includes the following caveat:

“….Provided that the importer proves to the satisfaction of the Deputy Commissioner of Customs or Assistant Commissioner of Customs, as the case may be, that the goods, in respect of which the benefit of this exemption is claimed, are of the origin of the country listed in the APPENDIX in accordance with the Rules of Determination of Origin of Goods under the Agreement on South Asian Free Trade Area (SAFTA), 2006, published in the notification of the Government of India in the Ministry of Finance (Department Rev- enue) No 75/2006-Customs, (NT) dated the 30th June,2006.”

What does this mean for Kashmir apples?

According to Kashmir apple exporters, this essentially means that cheaper apples from Afghanistan, including those obtained from Iran but presented as Afghan-origin apples in Indian markets, would continue to pour into the country’s markets.

An official at Commerce Ministry told Ziraat Times that ‘this measure does not limit to apples, and that the exemption was part of a broader arrangement with the neighboring countries on hundreds of commodities and goods.’

“There is a whole range of commodities and goods imported from India’s neighboring countries under mutual agreements, these countries give similar exemptions to India’s commodities and goods and it is not limited to apples”, he said.

According to a front-page report in the Rashtriya Sahara Hindi edition, even as Afghanistan’s total annual apple produce was one lakh metric tons, the country had exported about 6 lakh metric tons of apples to India between the months of October 2020 and January 2021 alone.

Much higher competition for Kashmir apples?

While Kashmir apple growers are worried that this would mean larger scale dumping of cheaper apples, originating from countries other than Afghanistan, flooding the country’s markets, thereby creating a highly competitive situation for Kashmir apples, there are others who have a different view.

“We can’t remain immune to competition for ever and expect import barriers to remain there for good without paying due attention to improving the quality and competitiveness of Kashmir apples. This is how international trade works, not only for apples, but all goods and commodities, and the only option for us is to raise our game”, Shafeeq Ahmed, an apple trader from Kashmir, said.

While Kashmir apple exporters and cold storage owners had put in lot of efforts in lobbying to ensure that the recently-announced customs duties were levied uniformly on apples, sources point out, the larger international trade considerations with the country’s neighbors weigh heavier in the process.

While observers say it is uncertain how the dynamics of price fluctuations would play out in the medium to long term, in an immediate term there will be negative impact on the earnings of apple farmers in Kashmir from this situation, including exporters, traders and cold storages, that have entered into anticipative contracts with sellers.

 

Leave a Reply

Your email address will not be published. Required fields are marked *

Loading…

0

J&K requires a different economic stimulus approach: CCIK

Property details of Revenue employees put into public domain: Div Com Kashmir announces