New tariff structure could curb illegal trade

A master plan initiative that could help cut illegal trade is the review of existing tariff structures and recommendations on new ones.

The review, proposed in the master plan, is being undertaken by ITAC at the request of Trade, Industry and Competition Minister Ebrahim Patel.

Poultry producers submitted proposals including:A shorter tariff code (six digits instead of eight) to reduce the opportunities for the mis-declaration of imports.

Introducing an entry price system to raise import prices to a realistic international production price level. A minimum entry price would eliminate the incentive to under-declare import prices.

There is also the possibility of an ad valorem duty (a percentage of the declared price) in addition to an entry price system. The ad valorem duty would keep track of price increases over time, while the entry price system protects against under-declaration.

The review is nearly complete and the recommendations are expected by the end of October.