(a) the rates of customs duty on wines, spirits and liquors prevailing during each of the last three years;
(b) whether the Government has decided to make changes in such rates;
(c) if so, the details thereof;
(d) whether there is any dispute in this regard;
(e) if so, whether the issue has been forwarded to the Dispute Settlement Panel of WTO; and
(f) if so, the present status thereof?
MINISTER OF STATE IN THE MINISTRY OF FINANCE
(SHRI S.S. PALANIMANICKAM)
(a), (b) and (c): Spirits/liquors have been attracting a basic customs
duty of 150% during the last three years, which is also the current
rate. During the last three years and till 2nd July, 2007, wines
were attracting a basic customs duty of 100%, which has been
increased to 150% with effect from 3rd July, 2007.
In addition, till 2nd July, 2007, wines, spirits/liquors were also
subjected to additional duty of customs at specified rates, having
regard to State Excise Duty rates leviable on like domestic items.
The rates of additional duty applicable till 2nd July, 2007 are given
in the Annexure. However,with effect from, 3rd July, 2007, this
additional duty of customs on imported spirit/liquor, wines and beer
has been withdrawn.
With effect from 1.3.2006, a special additional duty of customs of 4%
is also applicable on spirit/liquor, wines and beer. This levy still
continues.
(d) Yes, Sir.
(e) and (f) : The European Communities (EC) and the United States have
filed a dispute in WTO in this regard. Although, the EC have
suspended their complaint, the US has challenged the levy of
additional duties on import of alcoholic beverages and some other
products.
Annexure
Lok Sabha Unstarred Question No. 2618
CIF Price per case in US $ Rate of Additional duty of customs
Wines and beer
> 25 but > 40 20% or $40 per case, whichever is higher Liquor
> 10 but > 20 but > 40 25% or $ 53.2 per case, whichever is higher
Case: packing containing nine litres