Centre reduces import duty on certain food items from US

The Finance Ministry has reduced the basic customs duty on some imported items such as apples, almonds, lentils, and chickpeas from the US, according to an official order.

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According to the order, customs duty on imported lentils from the US has been completely exempted. It was at 20% earlier. Similar to this, the import duty on almonds has been reduced from 41% to 35%. In the case of apples, the duty has been reduced from 35% to 15%, according to tax experts. For chickpea imports, a 10% import duty will be charged on par with imports from other countries.

The action is a part of the elimination of the retaliatory duty placed on US exports in 2019 as a result of the US increasing import duties on specific goods. According to the order from the finance ministry, the duty revision is being made in the public interest and will take effect on September 6.

The action was taken in advance of the G20 summit and bilateral meetings that US President Joe Biden and Indian Prime Minister Narendra Modi are scheduled to have this week in the capital.

“India has revised its customs tariff system for imports from the United States. Import tariffs on apples, almonds, lentils, and chickpeas from the US have been drastically reduced in the backdrop of the G20 summit. Because India is a large importer of high-quality food products such as apples, lentils, and almonds, lowering tariffs ahead of a bilateral visit with US Vice President Joe Biden might offer an impetus for the two countries,” according to Rajat Mohan, senior partner at accounting firm AMRG & Associates.