WTO meet: India to oppose no customs duty policy on ecomm transmissions

India will not support further continuation of prohibition of imposing customs duties on electronic transmissions at the World Trade Organization (WTO),
meeting in Abu Dhabi next week, an official said Tuesday, as besides loss of revenue for developing countries, it also constrains their policy space.

New Delhi is of the view that e-commerce needs to be looked at from a development dimension and not from the “eyes of big tech companies”.


The moratorium on customs duties on electronic transmissions is in place since 1998 and gets extended every two years when the WTO ministerial conferences take place.

“There is no question of extending the moratorium. We have given a final extension. There will be no more extension…We are in favour of continuation of the work programme,” said the official.

Around 105 countries, including the US, the UK, Australia, China, and Japan favour this prohibition, and the issue would figure prominently in the meeting of 164 trade ministers in Abu Dhabi from February 26-29.

“The demanders need to tell us if they want an extension,” the official said.

Stressing that there is a work programme on e-commerce trade and the multilateral body should continue to discuss the issue in that ambit, the official said: “There is a need to look at the subject from a development dimension and not from the eyes of big tech companies”.

As per estimates, during 2017-2020, developing countries lost potential tariff revenue of $50 billion only on import of 49 digital products and 95% of this revenue tariff loss is borne by the developing countries.

India has also sought a clear definition of e-commerce trade.

“We need policy space for the sector,” the official added.

India and South Africa have asked the organisation to revisit the issue and have highlighted the adverse impact of the moratorium on developing countries.

India is witnessing a rise in imports of electronic transmissions, mainly of items like movies, music, video games and printed matter, some of which could fall within the scope of the moratorium.