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US exports to India encounter barriers: Trump administration

US exports to India encounter barriers: Trump administration

MUMBAI: US exports to India continue to face barriers as its customs officials generally require extensive documentation, leading to frequent and lengthy processing delays, the Trump administration said today.

Despite the Indian government’s efforts to pursue economic reforms, the structure of India’s customs tariff and fees system are “complex and characterised by a lack of transparency” in determining net effective rates of customs tariffs, excise duties, and other duties and charges.

Noting that US exporters have raised concerns regarding India’s application of customs valuation criteria to import transactions, it said India’s customs officials generally require extensive documentation, inhibiting the free flow of trade and leading to frequent and lengthy processing delays.

This is a consequence of India’s complex tariff structure, including the provision of multiple exemptions, which vary according to product, user, or intended use, it said.

India, it said, lacks an overarching government procurement policy and, as a result, its government procurement practices and procedures vary among the states, between the states and the central government, and among different ministries within the central government.