In the wake of COVID-19 pandemic, various countries in the Latin American and Caribbean (‘LAC’) have been facing economic challenges. Further such countries have distanced themselves from their traditional trade partners such as China. Accordingly, in order to get their economy back on track, these countries have enacted certain trade measures.
In one such trade measure, Brazil, Argentina, Colombia and Ecuador have reduced tariff duties to 0% upon import of certain products which inter alia includes articles of apparel / accessories, etc. made out of plastic and other medical equipment such as goggles, safety glasses, protective glasses, etc. classifiable under various sub-headings of chapters 39 and 90 respectively.
Accordingly, in order to capitalize on the opportunity, the Plexcouncil has issued a list of products, where the rate of import duty has been reduced by the said LAC countries. The Council has further requested its members to take necessary action in order to benefit from the tariff elimination to boost India’s exports and also identify export opportunities for harnessing export potential due to slow down and reduced supplies from importing partners of the LAC region.
GLS Comments:
Although nothing can compensate the loss caused by the COVID-19 pandemic, there has been a silver lining. The countries in the LAC have already broken ties with their traditional importing partners. Similarly, it is contemplated that even European countries would also be soon looking to change their traditional trade partners such as China. Accordingly, the Indian exporters could capitalize on this opportunity to enhance the exports.
The exporters should review their product line to check whether there are any opportunities to enhance their exports in such regions. In case, there are no current benefits available, the Companies could file representations before the appropriate Departments and Ministries requesting that their line of products be given export benefits.
Disclaimer:
The information provided in this update is intended for informational purposes only and does not constitute legal opinion or advice. Readers are requested to seek formal legal advice prior to acting upon any of the information provided herein. This update is not intended to address the circumstances of any particular individual or corporate body. There can be no assurance that the judicial/ quasi judicial authorities may not take a position contrary to the views mentioned hereinrra quis.
Sign up for the Newsletter