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On the occasion of the India Africa Forum Summit in
New Delhi from 7-9 April 2008, Prime Minister announced a Duty Free
Tariff Preference (DFTP) Scheme for Least Developed Countries (LDCs).
The relevant extract from PM's Statement is reproduced below:
"We recognize the crucial importance of market access
in ensuring the development dimension of international trade.
Accordingly, I am happy to announce a Duty Free Tariff Preference
Scheme for Least Developed Countries on the occasion of this Summit.
Under this Scheme, India shall unilaterally provide preferential
market access for exports from all 50 least developed countries, 34
of which are in Africa. The Scheme will cover 94% of India's total
tariff lines. Specifically, it will provide preferential market
access on tariff lines that comprise 92.5% of global exports of all
Least Developed Countries. Products of immediate interest to Africa
which are covered include cotton, cocoa, aluminium ores, copper
ores, cashew nuts, cane sugar, ready-made garments, fish fillets,
and non-industrial diamonds."
2. The contours of the DFTP Scheme are:
·
The DFTP scheme grants duty - free access to
exports from the LDCs on 85% of India's total tariff lines. This is
to be implemented over a period of 5 years through 5 equal tariff
reductions of 20% each on the current applied rates.
·
On another 9% of India's total tariff lines
(468 tariff lines), India would grant preferential duty access as
per the prescribed margin of preferenece (MOP) on the applied rates.
This is the tariff preference component of the Scheme.
·
There are, however, 328 items (at 6-digit HS
level) on which no tariff preferences would be available. This
negative list comprises 6% of India's total tariff lines.
·
Thus, the DFTP LDC scheme would provide duty
free and preferential market access on 94% of India's total tariff
lines.
·
The Scheme is expected to become effective
from 1st May 2008.
·
Some of the products of export interest to
LDCs, covered under the Scheme, include crude petroleum, readymade
garments (t-shirts, trousers), natural gas, non-industrial diamonds,
aluminium non-annoyed, cotton, shrimps and prawns, tropical wood,
aluminium ores, iron ores, tankers and other similar vessels,
petroleum oils, copper ores etc.
3. It is important to note that in order to
get covered under this Scheme as a Beneficiary Country, the
individual LDC members are required to give a Letter of Intent to
the Government of India that they wish to be covered under this
Scheme and that they would comply with the provisions of this
Scheme. An indicative sample of the Letter of Intent is being sent
separately so that you can circulate it to the host LDC government.
4. The Scheme honours the mandate agreed to
by Trade Ministers at Hong Kong in December 2005 which obliged
developed country members to provide duty-free quota-free access on
a lasting basis to at least 97% of products originating from LDCs.
Developing country members in a position to do so were encouraged to
provide access but were permitted to phase in commitments and enjoy
appropriate flexibility in coverage.
5. India is among the first few countries in
the world to announce such a duty free and preferential market
access scheme for LDCs.
6. This is to keep you abreast of this Scheme
and to enable you to respond to any immediate enquiries from your
host governments.
7. Detailed information on the DFTP Scheme is
being made available separately.
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