India backs move to end duty free e-transmissions

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Abu Dhabi: Should customs duty exemptions on electronic transmissions currently enjoyed by many of the world’s e-commerce companies continue to exist? This exemption was supposed to end this year. India strongly believes that this exemption should be discontinued. Countries around the world should be given the freedom and choice to impose custom duties as they see fit.

This provision of exemption is quite complex. E-commerce companies have been enjoying exemption privileges since 1998. The exemption time limit is set to expire this year, if the WTO does not reach any consensus on this matter. That is why developing countries are making all possible efforts to push it through. Sources also say that in order to convince developing countries, developed countries will have to put forth some solid proposals, otherwise it will be difficult to persuade the developing countries.

India has been in strong favour of ending this exemption from the very beginning. However, India wants to attract investment for its digital industry. But it is believed that if India continues to maintain its aggressive stance, it may affect investment prospects in India, given that companies fear custom duty imposition. Sources say that though India has categorically said taht it will not impose customs duty, but the option to do so must be there.

India issued a statement after the working group meeting, saying that there is a need to reconsider the imposition of zero customs duty so that the interests of both developed and less developed countries are protected.

India maintained an aggressive, sharp stance in the ensuing discussions. India said that some select companies from developed countries have a clear dominance in the e-commerce market. There is a deep digital divide between developed and developing countries, which is why developing countries are lagging behind in terms of e-commerce. WTO should provide all kinds of policy options to developing member countries in order to promote digital industrialisation.