India reviews tariff surcharges on luxury goods, renewables and chemicals amid US pressure

India will review the import tariffs for over 30 items, including luxury cars and photovoltaic cells. This could lead to a rise in imports from America, according to a senior official at the finance ministry.

To counteract President Donald Trump's increasing tariff actions, the Government has already reduced the tariffs on several products, including high-end cars, bikes, and chemicals, in the latest Budget. However, it has imposed an additional Agriculture Infrastructure Development Cess, which is an alternative tariff on many items.

The following is a list of items that could be subject to a review in AIDC tariff:

Cut in Basic Customs Duties

On Saturday, the Indian budget slashed basic duties on several items such as luxury cars and solar cells. The maximum import tariff was reduced from 150% to 70 %, and the average tariffs were cut to under 11%, from 13%. A new alternative tariff, called the Agriculture Infrastructure Development Cess, has also been increased on some items.

The AGRICULTURE INFRASTRUSTRUCTURE DEVELOPMENT PROCESS is a process that aims to develop the infrastructure of agriculture. After reducing peak tariffs on imports, India introduced a list of 32 special items including luxury cars and chemical products, for which a tariff ranging from 5% up to 70% was imposed.

These items were previously subject to zero AIDC tariffs.

LUXURY CARS AND MOTOR VEHICLES Motor vehicles and luxury cars that have a CIF value of more than $40,000 are subject to a 40% surcharge, as well as a 70% reduction in the basic custom duty.

AIDC tariffs on used and transport vehicles are 20% and 67.5%, respectively. Basic customs duty is now 20% instead of 40%.

A 7.5% surcharge is applied to yachts and sport vessels.

SOLAR CELLS MODULES

The import duty on solar cells, modules and other semiconductors has been reduced to 20% from 25%-40%. CHEMICALS

Lab chemicals are now subject to a reduced customs duty, from 150% to 70%. They also face an agricultural cess of 70 %. BUILDING MATERIAL

The basic 20% customs duty is now 20%.

HOUSEHOLD ITEMS The surcharge on footwear and materials used to manufacture them is 18.5%, while bicycles are subject to a 15% surcharge after a 20% reduction in the basic customs duty.

Surcharges of up to 20% are applied to home furniture, smart meters and electronic toys.

(source: Reuters)