China has granted tariff concessions to over 800 items exported by India under the Bangkok Agreement, while New Delhi is reciprocating by lowering the duty access for nearly 200 items exported by Chinese companies.
In a press release, the commerce ministry said China had granted concessional access for 217 tariff lines at the eight-digit level.
"Besides, India's exporters are also eligible for concessions on items on which China has already exchanged bilateral concessions with Bangladesh, Republic of Korea and Sri Lanka," it said.
The Bangkok Agreement, signed in July 1975, was an initiative under the Economic and Social Commission for Asia and the Pacific and remained operational among the four signatories -- Bangladesh, India, Republic of Korea and Sri Lanka -- till April 2000.
China's inclusion in the Bangkok Agreement was approved in April 2000, and it concluded its bilateral negotiations with India last year.
Although a detailed list of 106 items (at the six-digit level) -- on which India had lowered duties -- was not available, the coverage would be the same as those on which concessions had already been granted to Bangladesh, Sri Lanka and the Republic of Korea.
While textile goods -- ranging from yarn to garments -- accounted for over a third of the items on which tariff had been reduced, chemicals and pharmaceutical exporters would also gain in the Chinese market.
Some machinery and spares are also on the list of items on which tariffs have been cut along with white goods such as microwaves and television sets.
The decision would be applicable from January 1, a notification of the General Administration of Customs, People's Republic of China said.
While the notification listed out 902 items, some items such as optic fibre, telecom equipment, mushroom spawn, coconut seedlings, beer made of malt and some machinery and spares were imported duty-free by China even before the agreement came into force.
"The concessions would be available subject to fulfillment of Rules of Origin prescribed there upon," the release said. To be eligible for preferential duty access in China under the Bangkok Agreement, the goods will have to comply with the Chinese Rules of Origin and need a certificate of origin from an authorised Indian agency.
On the other hand, imports from China will also have to comply with the rules of origin notified by the Indian Customs department. China will be maintaining average margin of preference, which it offered on the basis of 2003 most favoured nation rates for 217 tariff lines at 13.5 per cent of the prevalent MFN tariffs every year, the release said.
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