Monday, 1 August 2011

Reduction of duty on Japanese diesel engines and gearboxes from today




A Comprehensive Economic Partnership Agreement (CEPA) between India and Japan which will come into effect from today has planned to reduce duty of Japanese diesel engines and gear boxes. A free trade pact which was entered into has ensured that these cuts materialize.
India will lessen duty on diesel engines from 12.5% to 5% within the next six years while duty on gear boxes will be reduced from 12.5% to 6.25% in next eight years. Levies on car mufflers also stand be abolished during coming 10 years.

Import duties on over 94% of trade items between India and Japan will be eliminated during the coming decade. This will enhance bilateral trade between the two countries which is likely to double by 2015.
India and 27 other nations of the European Union have been trying to reach a settlement in this regard for the past three years and are likely to reach its logical finale by end of this year. However there are skeptics in the auto sector who feel that such an agreement would affect future investments in India.
Source : Rushlane.com

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