India’s Avg Customs Duty Cut To 10.66% From 11.65%

India has significantly reduced its average customs duty rate to 10.66 per cent from 11.65 per cent and is now moving towards the same levels as prevalent in the Southeast Asian countries, a senior government official said on Monday.

CBIC (Central Board of Indirect Taxes & Customs) Chairman Sanjay Kumar Agarwal said the rate rationalisation exercise was carried out with the objective of making the tariff structure simple, ensuring competitiveness of Indian industry and simplifying the tax regime. “Now the average customs rate in India has come down from 11.65 per cent to 10.66 per cent and we are now moving towards the average rate in ASEAN countries,” he said here at an interaction with industry representatives.

The 10-nation bloc ASEAN (Association of Southeast Asian Nations) countries are Brunei, Cambodia, Indonesia, Laos, Malaysia, Myanmar, Philippines, Singapore, Thailand and Vietnam. The exercise was also important for dispelling the narrative of developed countries like the US that India has one of the highest tariffs.

The US President Donald Trump’s administration has accused India of being “tariff king” and “tariff abuser”. He noted that in the high duty brackets from 25 per cent to 150 per cent, only a few products are available

in the country.