: New UK Global tariff may benefit Indian exports to the extent of USD 32 billion #FinanceIndia #StockMarketNEWS New UK Global tariff may benefit Indian exports to the extent of USD 32 billion New Delhi,

@StockMarketNEWS Tue 22 Dec, 2020

Posted in: #FinanceIndia #StockMarketNEWS

New UK Global tariff may benefit Indian exports to the extent of USD 32 billion #FinanceIndia #StockMarketNEWS
New UK Global tariff may benefit Indian exports to the extent of USD 32 billion New Delhi, Dec 22 (KNN) The new UK Global Tariff (UKGT), which Britain has proposed to apply on imports after December 31, 2020, may benefit Indian exporters as it allows duty-free import of 507 goods (at HS Code 6 digit) worth USD 32 billion.

According to a study by MVIRDC World Trade Center Mumbai, India has export potential in these goods as it is already exporting them to the UK, although its market share in that country is limited.

Under UKGT, the UK government liberalized import of more than 901 goods (at HS 6 digit tariff lines) by allowing duty-free import of these goods. Of these, India exports 507 goods worth USD 547 million. However, the annual import of these 507 goods by UK is USD 32. 03 billion, which leaves huge scope for Indian exporters to enhance market access in that country by taking advantage of the zero duty.

On January 31, 2020, the UK formally decided to exit the European Union and chose a transition period of 11 months upto December 31, 2020 for negotiating its trading relationship with the EU and other countries.

With the deadline of this transition period nearing, the UK government has introduced its own tariff schedule, known as UK Global Tariff (UKGT) to replace the EU’s Common External Tariff, which applies only till December 31, 2020.

"The UK government has placed this new tariff schedule before its Parliament for approval. Once it is approved, the new tariff schedule will be applicable to the goods imported by the UK from any country (except the countries with which it has signed free trade agreements)," said a statement.

Thus, until the UK signs a trade agreement with India, this new tariff schedule will be applicable to goods exported from India. At a recent industry event, the UK Secretary of State for International Trade Elizabeth Truss said, “The new UK Global Tariff will be twice as beneficial for Indian exports as the EU’s existing rules. ”

The new tariff schedule eliminates import duty on certain organic and inorganic chemicals from 6-7 per cent, which was applicable under the EU’s Common External Tariff (CET). In some of the organic chemicals such as cyclic alcohols, India has 54 per cent share in UK’s total imports. In aldehydes, (which is another organic chemical), India has a share of 72 per cent in total imports of the UK.

Similarly, UK proposes to eliminate duty on cotton yarn, fabric, granite, ferro alloys, certain parts of machine tools, copper products, leather articles and certain types of vegetables. In all these products, India’s share in UK’s imports is more than 25 per cent, although the value of Indian exports to that country is around a few million US dollars.