Extension WTO e-comm duty moratorium for longer period to give certainty to biz: Union minister Piyush Goyal

India is pushing for an extended moratorium on import duties for digital goods transmitted across borders. This move aims to provide businesses with greater certainty and predictability for their operations. The World Trade Organisation is current...

Extension WTO e-comm duty moratorium for longer period to give certainty to biz: Union minister Piyush Goyal
Extending moratorium in the WTO on import duties for cross-border electronics transmission for longer period will bring more certainty and predictability to businesses, Commerce and Industry Minister Piyush Goyal said on Thursday.

The 14th ministerial conference, which concluded in the early hours on March 30 in Yaounde, the capital city of Cameroon, failed to reach a consensus on the moratorium.

"We discussed it amongst the ministers, and we were generally of the opinion that to bring more certainty and predictability to businesses, we must this time consider a longer term. This is still under discussion amongst various countries, and will be finalised in the next month or two in Geneva," Goyal told reporters here.


The remarks reflect a shift in India's stance, which had earlier supported a customary two-year extension.

The talks failed on the issue in WTO as the US was pushing for a five-year extension, Brazil was for two years, while some member countries agreed to a four-year extension.

"India's stand was that we should look at a little longer period, so that businesses can plan their business activities for a longer period," he added.
ADVERTISEMENT

The minister also said India's stand is that the period of extension of moratorium on e-commerce taxation and moratorium on non-violation complaints under the Trade Related Intellectual Property Rights (TRIPS) Agreement of the WTO should be similar.

The safeguard against non-violation complaints expired on March 31, 2026. This moratorium has been in force since 1995.

"While consensus could not be reached on the period of extension, we have reiterated that the extension of moratorium on custom duties on electronic transmission will be co-terminus, and it must align with the TRIPS non-violation moratorium," Goyal said.

In May 1998, WTO members agreed for the first time not to impose customs duties on electronic transmissions for two years, a moratorium that has been extended biennially since then.
ADVERTISEMENT

Its expiry would open the door to imposing tariffs on e-commerce. E-commerce moratorium expires for the first time in 26 years.

Customs duties are usually applied by WTO members on imported goods, but since 1998, they have agreed not to impose tariffs on electronic transmissions. WTO members have agreed not to impose customs duties on electronic transmissions such as digital downloads and streaming since 1998.
ADVERTISEMENT

On e-commerce moratorium, India has advocated strongly for the digital divide to be bridged, for building digital infrastructure and skill sets in the Least Developed Countries (LDCs) and developing countries and for regulations to empower them in the future, Goyal added.
Download
The Economic Times Business News App
for the Latest News in Business, Sensex, Stock Market Updates & More.
Download
The Economic Times News App
for Quarterly Results, Latest News in ITR, Business, Share Market, Live Sensex News & More.
READ MORE
ADVERTISEMENT

READ MORE:

LOGIN & CLAIM

50 TIMESPOINTS

More from our Partners

Loading next story
Business News › Tech › Tech & Internet › Extension WTO e-comm duty moratorium for longer period to give certainty to biz: Union minister Piyush Goyal
Text Size:AAA
Success
This article has been saved

*

+