Sunday, 17 February 2019

Pulwama attack: India’s 200% duty is as good as a ban on Pakistani imports

The duty hike came a day after India withdrew the ‘most-favoured nation’ status it had granted to Pakistan
Army soldiers at the site of suicide bomb attack at Lathepora Awantipora in Pulwama district of south Kashmir, Thursday, February 14, 2019 | Photo: PTI
Latest News: India on Saturday hiked the customs duty on all goods imported from Pakistan to 200 per cent, in the aftermath of the Pulwama terrorist attack that claimed the lives of 40 Central Reserve Police Force personnel.
What does this mean?
In effect, according to agency reports, slapping 200 per cent import duty means almost banning imports from Pakistan. That is because such a big hike in the customs duty will drastically increase the prices of Pakistani goods coming to India, thereby making them far less competitive against other imported goods.
What are the products most likely to be hit?
The top ten products Pakistan exports to India include fresh fruits, cement, petroleum products, minerals and leather, according to agency reports. Further, processed minerals, inorganic chemicals, raw cotton, cotton fabrics, and glass and glassware are also among items that account for 95 per cent of the total shipments from Pakistan to India. 
The two main items imported from Pakistan are fruits and cement, which attracted customs duty of 30-50 % and 7.5%, respectively. Domestic importers who have already placed their orders from Pakistan may face issues after this decision. They may have to pay the 200% duty or undertake lot of paperwork to get their consignment.
Click Here on Pulwama Terror Attack

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