India raising import quality standards are manifested in its imposing quantity constraints, stern disclosure norms and frequent entry-port checks for products shipping from Asian countries.
Imports curb policy on anvil
- As per the government sources, the capital-New Delhi is seeking ways to protect trading partners from re-routing Chinese goods and thereby ensuring India raising imports quality standards. This even includes consideration to enhance value-addition requirement from 20% to 40% for the imports from Southeast Asian Nations, especially China in the wake of recent territorial disputes. However, India also has key concerns about South Korean trade flows.
- As per the officials, the measures will primarily target imports of base metals, electronics and gadgets furniture, and leather goods, toys, tires, textiles, air conditioners and televisions. India’s trade ministry released a notification few days back to limit inbound TV shipments by forcing importers to obtain a special approval.
- Considering Free Trade Agreement (FTA) with ASEAN member nations, the changes are likely to affect mainly Malaysia, Thailand, Vietnam and Singapore.
- The officials also expressed that though “Lifting duties have a restricted impact”, our extant goal is to boost quality standards and making customs department more heedful to ensure that goods in FTA have roots in those countries.
- The source added, “Many Asian collaborator provides a location to route specific Chinese goods. We go product by product to plan various kinds of intervention, much of which is going to be on non-tariff lines.
- The officials also indicated the preparations to push product by product for various forms of action, most of which will be on non-tariff positions. India has a hostile relationship with China, and in June a Himalayan border conflict erupted into the worst confrontation in decades. The India article describes the assassination of 20 of its troops.
- China is also India’s rank second trading partner, with trade worth 87 billion dollars in the financial year 2018-2019, and a trade deficit of 53.57 billion dollars in China’s support. The authorities in Thailand and Malaysia said they had not received any email communications about hiking non-tariff barriers or rescheduling of goods.
- In a report to Reuters, Thailand’s trade ministry conveyed the ASEAN treaty would be amended to make it more flexible with respect to tariff liberalization and rules of origin, and to have clearer customs and authentication procedures.
- Simultaneously, the officials also indicated that to substantively expedite India Raising Imports Quality Standards, the government is working only on those FTAs that are mutually advantageous. India has trade deficit with most of those countries with which it has signed FTAs.
- George Paul, CEO of the Manufacturers’ Association for Information Technology anguished at the ill practice of shipping electronic products to India via ASEAN Nations
Curb on imports from Asian countries seems to be a transient move. The real impact on overall balance of trade position viz. difference in value between a country’s exports imports would be known over forth coming years only.