The Plexconcil (Plastics Export Promotion Council), under the Department of Commerce, has urged the government to renegotiate the India-ASEAN FTA (free trade agreement) imposing BCD (basic customs duty) of 10-15 per cent on import of value-added plastics from 5-10 per cent.
Hemant Minocha, Chairman, Plexconcil, said, “While the import duty on polymers stands at 7.5 per cent, the ASEAN arrangement offers lower rates of 5 per cent for certain polymers. However, the Cost, Insurance, and Freight (CIF) rates provided by ASEAN-based producers are higher for Indian importers than that extended to other countries.”
“This discrepancy eliminates any potential benefits for Indian importers, with the advantage instead being retained by the suppliers. Imports of value-added plastics from ASEAN are valued at a little over $800 million. Increase in import duty from 5 per cent to 15 per cent could bring additional revenue of $80 million,” he added.
The Council also urged for increasing BCD on value-added imports from 10 per cent to 15 per cent to benefit the domestic plastic processing industry, which sustains approximately 5 million employees throughout its value chain.
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