Question : IMPORT DUTY ON NATURAL RUBBER

(a) the country-wise, rate of duty for import of natural rubber into India;

(b) whether the Government is considering any proposal to reduce import duty on natural rubber for purchases from Thailand;

(c) if so, the details thereof and reasons therefor;

(d) whether the Government is aware that due to increased imports during the year 2006-07, the indigenous price of natural rubber has come down to the detriment of rubber growers particularly in Kerala; and

(e) if so, the details thereof and Government’s reaction thereto?

MINISTER OF THE STATE IN THE MINISTRY OF FINANCE (SHRI S.S. PALANIMANICKAM)

(a) The general rate of customs duty for ‘natural rubber latex’ is 70% and it is 20% for ‘natural rubber in all other forms’. However, under various trade agreements including ‘Preferential Trade Agreements’ and ‘Free Trade Agreements’, concessional rates of customs duty have been provided for import of natural rubber from specified countries, subject to fulfillment of specified criteria. Rate of duty applicable under these Agreements is as under:

S.	Country of origin	Rate of customs duty on natural rubber
No.
1.	Bangladesh,People’s	(i) 39.9% for natural rubber latex	Republic of China,	(ii)16% for natural rubber in other	Republic of Korea	forms	and Sri Lanka
2.	Nepal	Nil
3.	Bhutan	Nil