ANNOUNCED AS TEMPORARYNo
Internal taxation of imports
On 21 December 2010, vide Notification No. 127/2010 - Customs, the Government of India has reduced the effective tax rate on onions to nil rate of duty, as opposed to the earlier 5%.
Shallots have been introduced as a separate entry within the classification of onions, but at present also enjoy the same nil rate of duty.
The effective tax rate is the duty payable after exemptions. Onions have received this exemption from duty liability vide amendment to the General Duty Exemptions (GDE) contained in Notification No. 21/2002 - Customs (notification dated 1 March 2002).
According to UN Comtrade, bilateral trade on the stated tariff line did not exceed USD 1 million for a single trading partner in 2009, the year prior to the imposition of this measure. Hence, no countries are listed as affected trading partners.
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