EU spirits exports to India in 2005 amounted to 43 million euros ($56.4 million), while wine exports stood at just 7 million euros, according to a study by the Centre for European Policy Studies, arguably due to the heavy-duty regime.

The wine and spirit importers have welcomed the decision saying that they have been asking for it for the last four years. Wine importers would feel slightly disappointed because they were hoping that the basic duty of 100% would not be touched.

Asked about the government scrapping additional customs duty of up to 150 per cent on imports of wine, liquor and beer, a USTR spokesman said, "We cannot comment on pending cases but we would welcome steps by India to help address US concerns in this area".

The duty cut was expected to be announced on July 1, according to the announce- ment made by the government a couple of weeks ago. Everyone interested in this news was eagerly awaiting the announcement which was delayed by a couple of days.

Subhash Arora

Wednesday, July 4, 2007