India cuts import duties on cranberries, blueberries, and frozen turkey

India has cut the customs duty on a number of food items, including frozen turkey, cranberries and blueberries, following an agreement with the US in September 2023 as part of efforts to resolve a long-standing dispute at the World Trade Organization.

The notification by the Central Board of Indirect Taxes and Customs comes ahead of the 13th WTO Ministerial Conference in Abu Dhabi from February 26 to 29.

As per the notification, which comes into effect from Tuesday (February 20), the import duty on fresh, frozen and dried blueberries and cranberries has been slashed to 10% from the previous rate of 30%. Cranberries, otherwise prepared or preserved, whether or not containing added sugar or other sweetening matter or spirit, not elsewhere specified or included would now attract an import duty of 5%.

Similarly, the import duty pertaining to meat and edible offal of turkeys, frozen has been reduced to 5% from 30%.

On September 8, 2023, US Trade Representative Katherine Tai had announced that the US and India have agreed to resolve their last outstanding dispute at the WTO, India — Measures Concerning the Importation of Certain Agricultural Products. “These tariff cuts will expand economic opportunities for US agricultural producers in a critical market and help bring more US products to customers in India,” an official release had explained. 

“In pursuance of the bilateral agreement that took place in the recent G20 Leader’s Summit between India and USA intended at addressing the past disputes, Central Government has slashed import duty on certain items,” said Khushbu Trivedi, Associate Director- Indirect Tax, Nangia Andersen India, adding that the reduction of duty on these niche items rarely produced in India would help the US in penetrating the Indian market, and also lower the prices of these products down in India. “This move shall also benefit other nations forming part of WTO,” she said.

Prior to that in June last year, India and the US had also agreed to terminate six outstanding disputes at the WTO. At that time India had reduced tariffs on certain US products, including chickpeas, lentils, almonds, walnuts, apples, boric acid, and diagnostic reagents.

Further, in response to the concerns raised by the cotton industry, the CBIC has also lowered the import duty on cotton, not carded or combed, with staple length exceeding 32 mm to nil. “This decision reflects a proactive approach by the Government to address industry feedback and adapt import regulations accordingly, potentially benefiting stakeholders involved in the cotton sector,” said Trivedi.