Washington: The US sought international arbitration Friday in its bid to overturn India's import duties on US wines, spirits and other products.
Washington asked the World Trade Organization (WTO) to set up a dispute settlement panel in the case, the US Trade Representative's Office (USTR) said. Talks in April involving India, the US and the European Union failed to resolve the dispute, the office said.
"We believe the layers of customs duties India applies to US products, in particular to wine and distilled spirits, are not in line with its WTO commitments," US Trade Representative Susan Schwab said in a statement.
India imposes an additional duty of 20-75 percent on the value of beer and wine imports and duties of up to 150 percent on distilled spirits, but when "extra additional duty" is added, the real levy ranges from about 150-550 percent, the US says.
The extra duties also apply to other US imports such as dairy products, sometimes resulting in levies that exceed those allowed for India under WTO accords, the US charges.
US exports of wine and spirits to India under duty-free arrangements for airport shops and luxury hotels have surged since 2000, but because of the high duties elsewhere, total exports of these products to India remain low, USTR said.
SOURCE : http://content.msn.co.in/NHews/Business/BusinessDPA_260507_1215.htm
Washington asked the World Trade Organization (WTO) to set up a dispute settlement panel in the case, the US Trade Representative's Office (USTR) said. Talks in April involving India, the US and the European Union failed to resolve the dispute, the office said.
"We believe the layers of customs duties India applies to US products, in particular to wine and distilled spirits, are not in line with its WTO commitments," US Trade Representative Susan Schwab said in a statement.
India imposes an additional duty of 20-75 percent on the value of beer and wine imports and duties of up to 150 percent on distilled spirits, but when "extra additional duty" is added, the real levy ranges from about 150-550 percent, the US says.
The extra duties also apply to other US imports such as dairy products, sometimes resulting in levies that exceed those allowed for India under WTO accords, the US charges.
US exports of wine and spirits to India under duty-free arrangements for airport shops and luxury hotels have surged since 2000, but because of the high duties elsewhere, total exports of these products to India remain low, USTR said.
SOURCE : http://content.msn.co.in/NHews/Business/BusinessDPA_260507_1215.htm