WTO panel says India violated trade laws with customs duty on phones and ICT goods

As India scales up smartphone manufacturing, the Finance Ministry granted customs duty exemption on some parts to boost production. Although India has been signing multiple free trade agreements to allow seamless import and export of goods, it has been stuck in a dispute with several countries.

The World Trade Organisation has recently concluded that India has violated global trading norms with respect to duties on tech imports.

Tariffs unacceptable to trade partners?

• Panels had been set up by the WTO in 2017 to settle a dispute about India imposing a 10 per cent customs duty on mobile handsets and ICT products.

• The levy was then increased to 15 per cent in the same year and later to 20 per cent, triggering opposition from WTO members including the European Union, Taiwan, Thailand, Japan and China.

• Those substantially hit by the duty had also started consultations with India on the matter, while others including Russia, Brazil and the UK among others were also concerned.

Duties in violation of norms

• Now the WTO has found that the import duty was against international trading laws, and India must take measures to conform with obligations.

• After the panel in 2017, two more had also been formed by the WTO in 2020 to resolve the dispute between India and other member countries.