Morbi takes major ICCTAS role - October 25th (page 3)

The new chairman will also be continuing the Council’s efforts and discussions with policy-makers to address the anomaly of inverted duty structure and increased abatement on MRP.
Through concerted efforts, the new chairman will highlight to the government the detrimental impact of Notification No. 72/2005-CUSTOMS which has allowed a further concession to tiles imported from China, reducing the basic custom duty on tiles from that country to 6.45%.
According to Mr Girishbhai;
“the implication of this additional concession is that the domestic manufacturers importing raw materials used in the manufacture of ceramic tiles have to pay 15% custom duty whereas an importer bringing in finished tiles from China pays only 6.45% customs duty. This gives the importer an unfair price advantage over locally manufactured products which will lead to huge pricing problems in the local industry as well as resulting in the erosion of profitability of local manufacturers who pay a huge custom duty on the raw materials it imports to manufacture tiles. This could thwart fresh investments being made in the industry.”

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