NEW DELHI, MARCH 19: India will bring down the bound rates of tariffs for all agricultural items to levels ranging from 100 to 300 per cent by March 31, 2004, in accordance with the Uruguay Round agreements.Barring some agricultural items for which the bound rates have been historically kept low, the rate is 100 per cent for primary products, 150 per cent for processed food items and 300 per cent for edible oils.India is also to lower the bound rates for textile items by January 1, 2005 and for all other products by March 1, 2000. Prior to the round, India had bound about 6 per cent of its tariff lines.In all, India has bound about 67 per cent of its tariff lines including those for agricultural items and 62 per cent of lines for non-agricultural goods. Recently, 12 more agro products were brought within the ambit of bound rates ranging from 50 to 60 per cent. The major items which include rice, skimmed milk as well as milk powder, jowar and spelt (a variety of wheat) were earlier enjoying zero duty rates.Tariff lines remaining unbound include mainly of consumer products such as passenger cars and some industrial items. For non-agricultural products, India has undertaken with a few exceptions ceiling bindings of 40 per cent ad valorem for finished goods and 25 per cent for intermediate goods, machinery and equipment.As for the applied rates, which are lower than the bound ones, they are decided autonomously as part of the overall economic policy. Under Article II of GATT, each member-country of WTO is obliged not to impose tariffs, duties or charges which are in excess of these bindings set forth in its tariff schedule.India is an original signatory to GATT 1947. It also signed the Marrakesh agreement establishing the WTO on April 15, 1994. The WTO formally came into force on January 1, 1995.The GATT in its modified form known GATT 1944 also became a part of the WTO agreement. India has been a consistent supporter of multilateral trading system.
