EU to allow 2.5 lakh Indian cars at concessional duty under FTA; quota to reach 4 lakh in 10 years
The European Union will permit 2.5 lakh Indian passenger vehicles annually at a reduced 8 percent duty. This import duty concession will gradually decrease to zero percent over five years. Quotas for electric and hybrid vehicles also receive phased duty reductions and increases. Certain Indian agricultural and processed food items will also benefit from duty concessions. The free trade agreement…
The European Union has agreed to allow 2.5 lakh Indian-made passenger vehicles to enter its market each year under a new free trade agreement, with the quota rising to 4 lakh vehicles in the next decade. These imports, including ICE passenger cars and hybrid electric vehicles priced up to Euro 50,000 on a CIF basis, will enjoy a concessional duty of 8 percent for the initial years.
The tariff rate quota (TRQ) will be gradually reduced over time, reaching 4 percent in the fourth year and eventually becoming zero in the fifth year.
Beyond this quota, the standard most favoured nation (MFN) duty will apply. Indian origin internal combustion engine (ICE) passenger cars and hybrid electric vehicles priced above Euro 50,000 will face progressively decreasing duties, eventually reaching zero in the tenth year after the agreement's implementation.
The agreement also provides quota-based concessions for certain Indian-origin agricultural and processed food items, such as table grapes, dried onions, cucumbers, gherkins, molasses-based rum, and ghee. For instance, ghee will initially be subject to a duty rate equal to 50 percent of the customs duty's base rate, with the quota size increasing over the years and the duty ultimately being removed.
Written by urgent.news from The Economic Times - Economy's reporting — not their text. Machine-written — may contain errors; check the original before relying on it.
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