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India—Additional Import Duties: Tax Reforms via WTO

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WTO Dispute Settlement at Twenty

Abstract

The chapter analyzes the findings in India — Additional Duties and provides an assessment of critical issues impacting domestic regulatory autonomy of the WTO Members to impose taxes in an administratively efficient manner. The dispute has also paved the way for reviving the debate on the legal distinction between customs duties, other duties and charges levied in connection with imports and internal taxes imposed at the border in lieu of internal taxes. The chapter also highlights certain legal gaps left behind by the Appellate Body and certain contradictory understanding on the inter-relationship between Article II:1(b), II:2(a) and III:2 of the GATT 1994.

Former Ambassador of India to the WTO and currently Executive Partner, Lakshmikumaran and Sridharan (L&S) Attorneys, New Delhi; I am grateful to Vandana Gyanchandani for research assistance and to Prof. Abhijit Das and Dr. J.J Nedumpara for their valuable advice.

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Notes

  1. 1.

    Central Excise Department of Chennai, History of Chennai Central Excise, http://centralexcisechennai.gov.in/history1.html, Accessed on 24 Dec 2015.

  2. 2.

    Harrison J. (2011) Whisky in India, http://www.livemint.com/Companies/ny0g0a6Vo9Xz7DlB2TGcYI/Whisky-in-India.html, Accessed on 24 Dec 2015.

  3. 3.

    Central Excise Department of Chennai, supra note 1.

  4. 4.

    Harrison, supra note 2.

  5. 5.

    Internal files of the Department of Commerce, Ministry of Commerce & Industry, Government of India.

  6. 6.

    The Bengal Excise Act 1909.

  7. 7.

    Internal files of Department of Commerce, Ministry of Commerce & Industry, Government of India, supra note 5.

  8. 8.

    Ibid.

  9. 9.

    Ibid.

  10. 10.

    Ibid.

  11. 11.

    Ibid.

  12. 12.

    These correspondences are part of the internal files of the Department of Commerce, Ministry of Commerce & Industry, Government of India.

  13. 13.

    Ibid.

  14. 14.

    WTO (2011) Trade Policy Review of India: Report of the Secretariat, WT/TPR/S/249.

  15. 15.

    Ibid.

  16. 16.

    Ibid.

  17. 17.

    Section 2 and 3, First Schedule of the Customs Tariff Act, 1975;

    Section 12 of the Customs Act, 1962; Customs Notification No. 5/2004 (8 January 2004);

    Customs Notification No. 20/1997 (1 March 1997);

    Customs Notification No. 32/2003 (1 March 2003); and

    Customs Notification No. 19/2006.

  18. 18.

    Panel Report on India—Additional Duties on Imports from the United States, WT/DS360/R, at paragraphs 2.1–3, 7.2–24 (Hereinafter Panel Report on India—Additional Duties).

  19. 19.

    Ibid.

  20. 20.

    Ibid, at paragraph 4.11.

  21. 21.

    Ibid, at paragraphs 4.43. India argued that the United States had wrongly interpreted the statutory basis for India's levying of the duty. See paragraph 4.44 of the Panel Report.

  22. 22.

    Ibid.

  23. 23.

    Ibid.

  24. 24.

    Ibid, at paragraph 7.343.

  25. 25.

    Ibid, at footnote 202.

  26. 26.

    Ibid, at 7.212.

  27. 27.

    Ibid.

  28. 28.

    Ibid, at paragraphs 7.393–394.

  29. 29.

    Ibid, at paragraphs 7.141.

  30. 30.

    Ibid.

  31. 31.

    Ibid.

  32. 32.

    Ibid.

  33. 33.

    Appellate Body Report on India—Additional and Extra—Additional Duties on imports from the United States, WT/DS360/AB/R (Hereinafter Appellate Body Report on India—Additional Duties).

  34. 34.

    Ibid, at paragraphs 155–163.

  35. 35.

    Ibid.

  36. 36.

    Ibid.

  37. 37.

    Ibid.

  38. 38.

    Ibid.

  39. 39.

    Ibid.

  40. 40.

    Ibid.

  41. 41.

    Ibid, at paragraphs 149–153.

  42. 42.

    Ibid.

  43. 43.

    Ibid.

  44. 44.

    Ibid.

  45. 45.

    Ibid, at paragraphs 155–163.

  46. 46.

    Ibid.

  47. 47.

    Ibid.

  48. 48.

    Ibid.

  49. 49.

    Panel Report on India—Additional Duties, at paragraphs 7.173 and 7.176.

  50. 50.

    Ibid, at paragraphs 7.179–7.187.

  51. 51.

    Ibid.

  52. 52.

    Ibid.

  53. 53.

    Ibid, at paragraphs 7.189–190.

  54. 54.

    Appellate Body Report on India—Additional Duties, at paragraphs 7.169–175.

  55. 55.

    Panel Report on India—Additional Duties, at paragraph 7.206.

  56. 56.

    Ibid.

  57. 57.

    Ibid.

  58. 58.

    Ibid.

  59. 59.

    Ibid.

  60. 60.

    Appellate Body Report on India—Additional Duties, at paragraphs 169–175.

  61. 61.

    Ibid.

  62. 62.

    Ibid.

  63. 63.

    Ibid.

  64. 64.

    Panel Report on Argentina—Measures Affecting the Export of Bovine Hides and the Import of Finished Leather, WT/DS155/R at paragraphs 11.143–11.144.

  65. 65.

    GATT (1991) Panel Report on United States—Restrictions on Imports of Tuna, paragraph 5.13.

  66. 66.

    Appellate Body Report on China—Anti-Dumping and Countervailing Duties on Certain Automobiles from the United States, WT/DS440/AB/R (Hereinafter China—Autos (US)) paragraph 136.

  67. 67.

    Sub-committee at the Havana Conference (Havana Reports) E/CONF.2/C.3/A/W.30 See Grossman, Horn and Mavroidis 2012 for a discussion.

  68. 68.

    Ibid, at paragraph 175.

  69. 69.

    Ibid.

  70. 70.

    Ibid.

  71. 71.

    Ibid.

  72. 72.

    Ibid, at paragraph 170.

  73. 73.

    Ibid.

  74. 74.

    GATT Panel Report (1988) United States—Customs User Fee, L/6264, BISD 35 s/245, at paragraph 98.

  75. 75.

    Panel Report on India—Additional Duties, at fn 193 to paragraph 7.151.

  76. 76.

    Ibid.

  77. 77.

    Ibid.

  78. 78.

    Appellate Body on India—Additional Duties, at paragraph 192.

  79. 79.

    Panel Report on India—Additional Duties, at paragraph 7.148.

  80. 80.

    Appellate Body Report on India—Additional Duties, at paragraph 190.

  81. 81.

    The States of Andhra Pradesh, Assam, Delhi, Goa, Karnataka, Maharashtra, Punjab, Rajasthan, Uttar Pradesh, and West Bengal.

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Authors and Affiliations

  1. Lakshmikumaran and Sridharan (L&S) Attorneys, New Delhi, India

    Jayant Dasgupta

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Editors and Affiliations

  1. Centre for WTO Studies, Indian Institute of Foreign Trade, New Delhi, India

    Abhijit Das

  2. Jindal Global Law School, O.P Jindal Global University, Sonepat, Haryana, India

    James J. Nedumpara

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Jayant Dasgupta (2016). India—Additional Import Duties: Tax Reforms via WTO. In: Das, A., Nedumpara, J. (eds) WTO Dispute Settlement at Twenty. Springer, Singapore. https://doi.org/10.1007/978-981-10-0599-2_10

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