Hyderabad/New Delhi, Jan 23 (.) The Federation of Indian Export Organisations (FIEO) on Friday said that the European Union’s recent notification extending the withdrawal of Generalised Scheme of Preferences (GSP) benefits on certain product categories from India is expected to have limited practical impact on Indian exports.
Responding to reports suggesting that nearly 87 percent of India’s exports to the EU fall under the product categories mentioned in the notification, FIEO in a statement clarified that this does not translate into higher duties for a similar proportion of exports.
According to the exporters’ body, the EU notification refers to broad product groupings, within which several items already attract zero customs duty under the EU’s MFN (Most Favoured Nation) regime and are therefore unaffected by the suspension of GSP benefits.
In addition, many specific tariff lines within these broad categories continue to remain eligible for GSP preferences, subject to compliance with rules of origin and other conditions.
FIEO further noted that the move is not a new trade measure, but merely an extension of an earlier suspension of preferences that has been in force for these product groups for the past few years.
No additional products have been newly included under the GSP withdrawal through the latest notification.
“The real impact needs to be assessed at the tariff-line (HS code) level rather than at an aggregate product-category level,” FIEO said, advising exporters to review their individual product classifications before drawing conclusions.
. KNR .