labels: World Trade Organisation
WTO dumps US liquor case against India news
09 June 2008

Mumbai: A World Trade Organisation (WTO) panel has ruled that the United States has failed to prove a case that India has put excessive duties on import of wine and liquor, a major setback to the US.

``The US has failed to establish that the additional duty on alcoholic liquor is inconsistent'' with Indian commitments at the WTO panel said in a 182-page report issued from Geneva

India lifted a special additional import duty on foreign liquor, including on wine in 2007, in compliance with its commitment to the World Trade Organisation. The EU witdrew its case following this measure, while the US said it was not satisfied with India cutting import duties and persisted with the case.

The additional duty amounted to 20 to 75 per cent of the value of beer and wine imports - with the higher tax charged on cheaper wines - and from 25 to 150 per cent of imports of distilled spirits.

This was over and above the basic customs duty of 150 per cent allowed by the WTO.

The US and the EU had filed complaints at the WTO arguing that the layers of custom duties on wines and spirits ran counter to New Delhi's WTO commitments.

The multiple duties took the overall taxes on wine and spirits up to 550 per cent in some cases. The US had filed the complained against India in May 2007 claiming that additional duties on alcoholic beverages were as high as 550 per cent of the value of the product.


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WTO dumps US liquor case against India