India notifies duty reduction for 450 items from Mercosur

NEW DELHI: India on Monday notified reduction in customs duties on import of 450 items, including chemicals, petrochemicals, machine tools and electrical equipment, from Mercosur countries under a preferential trade agreement with the South American nations.

As per the agreement, the two sides are committed to give preferential access to bulk of their trade items.

The Central Board of Excise and Customs (CBEC) today issued a notification listing the import duty concession ranging from 10 to 100 per cent on the 450 items.

The import duty concessions in the form of exemptions are effective from today, the notification said.

As part of the agreement, Mercosur countries have agreed to give preferential access to about 450 items from India, which includes split air-conditioner systems, refrigerators, leather and footwear, silk, cotton, meat, chemicals and glass.

The agreement will provide a significant boost to bilateral trade and investment flows. The pact will also mark the first step towards the creation of a Free Trade Area between Mercosur and India.

Mercosur bloc consists of four countries of South America - Argentina, Brazil, Paraguay and Uruguay. Venezuela is in the process of becoming a full-fledged member of the bloc soon.