Question : Tea Import Tariff

(a) whether there is a proposal to lower tariff on tea from 110 per cent to 50 per cent by 2019 as per the ASEAN free trade agreement which envisages reducing agriculture commodity import tariffs to 50 per cent;
(b) if so, the details and the Status thereof;
(c) whether cheap tea will flood the Indian market and Indian tea will be able to withstand the competition owing to high labour cost, low productivity of labourers and land, and ever increasing input cost due to reduction in the import tariffs; and
(d) if so, the details thereof?

THE MINISTER OF STATE IN THE MINISTRY OF COMMERCE AND INDUSTRY
(SHRI C. R. CHAUDHARY)

(a) & (b): The tariff commitments of tea import as per the Free Trade Agreement (FTA) executed between India and the Members of Association of South-East Asian Nations (ASEAN) pertaining to Harmonised System (HS) Code 09024010 to 09024090 are given at Annexure-A. There are no tariff reduction commitments for tea imports covered under HS Code 09021010 to 09023090. Details are at Annexure- B.

(c) & (d): Vietnam and Indonesia are mainly orthodox and green tea producers respectively, the apprehensions in the Tea Industry on reduction in import tariffs for these types of teas is not correct. At present the imported tea from ASEAN countries is used in blending for re-export and the domestic market for green and orthodox tea is limited. As regards black tea, although the import duty under India-ASEAN FTA is lesser, but at current levels of import, it is not a major concern.


Annexure- A
Tariff commitment under ASEAN-India Trade in Goods Agreement (AITIGA) for Tea imports

HS Code
Product Description MFN 2016 Category under AITIGA 1 Jan-10 1 Jan-11 1Jan-12 1Jan- 13 31 Dec- 13 1 Jan 14 1 Jan- 15 1 Jan-16 31 Dec-16 1 Jan-17 1 Jan-18 1 Jan 19 31 Dec-19
09024010 Content Exceeding 3 Kg. But Not Exceeding 20 Kg. 100 Special Product 95 90 85 80 80 75 70 65 65 60 55 50 45
09024020 Black Tea, Leaf in Bulk 100 Special Product 95 90 85 80 80 75 70 65 65 60 55 50 45
09024030 Black Tea, Dust in Bulk 100 Special Product 95 90 85 80 80 75 70 65 65 60 55 50 45
09024040 Tea Bags 100 Special Product 95 90 85 80 80 75 70 65 65 60 55 50 45
09024050 Black Tea, Agglomerated In Forms Such As Ball, Brick and Tablets 100 Special Product 95 90 85 80 80 75 70 65 65 60 55 50 45
09024060 Black Tea, Waste 100 Special Product 95 90 85 80 80 75 70 65 65 60 55 50 45
09024090 Other 100 Special Product 95 90 85 80 80 75 70 65 65 60 55 50 45

Annexure- B

Tariff commitment under ASEAN-India Trade in Goods Agreement (AITIGA) for Tea imports

HS Code Product Description MFN 2016 Category under AITIGA
09021010 Content Not Exceeding 25 G 100 EL
09021020 Content Exceeding 25 G. But Not Exceeding 1 Kg. 100 EL
09021030 Content Exceeding 1 Kg. But Not Exceeding 3 Kg. 100 EL
09021090 Other 100 EL
09022010 Green Tea in Packets With Contents Exceeding 3 Kg. But Not Exceeding 20 Kg. Paise Per Kg. 100 EL
09022020 Green Tea in Bulk 100 EL
09022030 Green Tea Agglomerated In Forms Such As Ball, Brick And Tablets Paise Per Kg. 100 EL
09022040 Green Tea Waste 100 EL
0902290 Other 100 EL
09023010 Content Not Exceeding 25 G 100 EL
09023020 Content Exceeding 25 G. But Not Exceeding 1 Kg. 100 EL
09023030 Content Exceeding 1 Kg. But Not Exceeding 3 Kg. 100 EL
09023090 Other 100 EL
EL: Exclusion List

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