Date:04/01/2008 URL: http://www.thehindubusinessline.com/2008/01/04/stories/2008010451851200.htm

Back SAARC: Ministry scraps import duty on 4,800 items

Our Bureau

New Delhi, Jan 3

In keeping with the assurance given by the Prime Minister, Dr Manmohan Singh, the Finance Ministry has done away with import duty on more than 4,800 items from the four neighbouring least developed countries (LDC) — Bangladesh, Nepal, Bhutan and the Maldives.

In addition, the Finance Ministry has also cut customs tariff on several items imported from Pakistan and Sri Lanka.

Duty cut

Customs duty cuts have been effected on a variety of items such as meat, fish, milk, dairy products, and dry fruits, from Pakistan and Sri Lanka as part of attempts to boost trade within the South Asian region.

Official sources said that the latest round of tariff changes is aimed at deepening the tariff concessions given to those countries.

The new rates have come into effect from January 1, 2008.

Pharma products

All pharmaceutical products and drugs can now be imported at 10 per cent duty from LDCs, as against 12.5 per cent duty earlier.

However, tariff on drugs has not been cut in case of Pakistan and Sri Lanka, a Finance Ministry notification said.

Customs duty on fertiliser, lime and cement items has been cut to 10 per cent in case of LDCs, but it would remain at 12.5 per cent for Pakistan and Sri Lanka.

Dairy products, excluding milk powder, and butter oil can also been imported from Bangladesh, Nepal, Bhutan and the Maldives at zero duty.

The Agreement on South Asian Free Trade Area (SAFTA) came into force on January 1, 2006.

The SAFTA was signed on January 6, 2004 during the twelfth SAARC Summit in Islamabad.