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India asks Iran to review import tariff to make tea more competitive |
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New Delhi, March 9: In a move that would make Indian tea more competitive in the lucrative Iranian market, the Centre has asked Iranian customs authorities to be more flexible in calculating import duties to correct the disproportionately high levies being imposed on low-priced South Indian tea.
In a recent meeting with Iranian officials, a delegation from India comprising representatives from the Tea Board and the Commerce Ministry also pressed for review of certain pesticide norms that are affecting exports from the country.
“At present, the tariff line valuation for Indian tea in Iran is pegged to only the high-priced Assam and Darjeeling tea. As a result, buyers of low-priced South Indian tea end up paying much higher levies than what they should be if the import duty is calculated on the actual price of such tea,” a government official told BusinessLine.
India has asked Iran to have different tariff line valuations for the premium varieties and the South Indian teas and also two separate ones for peak-season and off-season. The Iranian customs authorities will soon get back to us on this, the official said.
“Indian tea exporters face a lot of competition from Sri Lankan tea in Iran and lowering of customs levies could play an important role in giving Indian tea an edge over its competitors,” the official said.
Iran imposes 20 per cent import duty on tea and charges 9 per cent VAT. A correct calculation of import duty on low-value tea can, therefore, can make a considerable difference to exporters of low-priced tea.
Commerce Ministry officials are also in talks with the Institute of Standards and Industrial Research of Iran for review of maximum residue levels (MRLs) of pesticides on tea imposed about a year ago which is resulting in rejection of some consignments of Indian tea.
“The ISIRI has agreed to examine field trial data in India based on which they would take a re-look at their risk assessment of tea from India,” the official said.
India’s tea exports to Iran were about 22 million kg (mkg) in 2015 against 18 mkg in 2014. However, with the country importing over 140 mkg of tea every year, India is looking at a higher share.
Source : thehindubusinessline.com
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