India Proposes 15% Retaliatory Duties on UK Imports for Restrictions on Steel Products

Posted by Written by Naina Bhardwaj Reading Time: 3 minutes

On September 28, 2022, India proposed retaliatory additional duty of 15 percent on 22 imports items from the UK, including blended whiskey, Scotch, cheese, etc. The move comes as a response to curbs imposed by the UK on import of 15 steel products, which caused a slump in Indian exports and resulted in loss of duty collection worth US$247.70 million.  


In retaliation to the United Kingdom’s move to impose restrictions on steel products, India has proposed additional customs duties of 15 percent on the import of 22 items from the UK. This retaliatory move, announced on September 28, 2022, comes as a response to the tariff-rate quotas on 15 steel product categories imposed by the UK with an out-of-quota duty of 25 percent.

In a communication to World Trade Organization’s (WTO) Council for Trade in Goods, India notified the global trade body of its decision to suspend concessions or other obligations under the General Agreement on Tariffs and Trade (GATT) 1994 and the Agreement on Safeguards that are substantially equivalent to the amount of trade affected by the safeguards UK has put in place.

India also specified that these curbs on steel products by the UK have resulted in a decline of Indian exports to the tune of 2,19,000 tons, on which duty collection would have otherwise amounted to US$247.70 million.

Both India and UK held consultations on August 5, 2022 virtually to discuss the extensions of the safeguard by the UK on concerned steel products, originally applied by the European Union (EU). It must be noted that these extensions have been expanded several times starting October, 2020.

However, on September 1, 2022, India communicated to the WTO that if no agreement is reached between both countries on the matter of compensation, India would reserve its right to suspend concessions or other obligations substantially equivalent to the adverse effects of the measures on the UK’s trade. As a consequence, India announced additional custom duty of 15 percent, equivalent to the amount of duty collected from products originating in the UK.

Which imported items from UK will face 15 percent additional duties?

UK Import Items Attracting 15 Percent Additional Duty

HS codes

Product description

India’s import from UK (Average of FY 2020-21 and FY 2021-22) (In US$ million)

Duty collected

(In US$ million)

04063000

Processed cheese not grated/powdered

0.425

0.064

22083012

Scotch in containers holding two liters or less

17.2

2.58

22083013

Blended whiskey in containers holding two liter or less

51.03

7.654

22085011

Gin in containers holding two liters or less

3.52

0.528

23099020

Concentrated for compound animal feed

2.255

0.338

27111200

Liquified propane

59.325

8.898

27111300

Liquified butanes

56.76

8.514

33019060

Aqueous distillates of essential oils

21.905

3.285

33049990

Beauty or make up preparations and preparations for the skincare

47.2

7.08

33079090

Other cosmetic and toilet preparations

1.725

0.258

71021000

Unsorted diamonds which are not worked, not mounted

64.14

9.621

71023100

Non-industrial diamonds unworked, simply sawn or cleaved

29.5

4.425

71069220

Silver (including silver plated with gold or platinum) other, semi manufactured

275.225

41.283

71069290

All other semi manufactured forms of silver

412.68

61.902

71081200

Other non-monetary unwrought forms of gold

294.915

44.237

71101900

Platinum in other forms

43.56

6.534

84099990

Other parts of semi diesel engines

22.735

3.410

84111200

Turbo-jets of a thrust greater than 25 kilonewtons (kN)

143.135

21.470

84212900

Other filtering/purifying machinery and apparatus for liquids

15.725

2.358

84219900

Other parts of filtering/purifying machinery

37

5.55

85311090

Other alarms

4.165

0.624

85444290

Other electric conductors fitted with connectors less than or equal to 1000 volts excluding paper plastic and rubber insulated

47.45

7.117

Total

247.73

 


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