Duty Free Tariff Preference Scheme

In line with the Hong-Kong Ministerial Declaration of December 2005, the Government of India has implemented Duty Free Tariff Preference (DFTP) Scheme for the Least Developed Countries (LDCs) including Myanmar.

2. The Scheme provides for:

(i) Duty Free items : On about 85% of India’s total tariff lines, applied customs duty would be removed over a period of 5 years with 20% reduction each year. Two reductions have already been effected with effect from August 2008 and August 2009.

(ii) Positive List : In addition to the 85% duty free tariff lines, preferential market access as per Margin of Preference (MOP) is available on about 9% tariff lines (458 items). The MOP ranges from 10% to 100% on different items and is available on the applied rate of duty as on date of imports.

(iii) Exclusion List : Contains only 6% of total tariff lines (326 items) on which no tariff preference is available.

3. Specifically, the Scheme provides preferential market access on tariff lines that comprise 92.5% of global exports of all LDCs. Products of immediate interest to Africa which are covered include cotton, cocoa, aluminium ores, copper ores, cashew nuts, cane-sugar, ready-made garments, fish fillets and non-industrial diamonds.

4. The Scheme provides that in order to avail benefits under the Scheme, individual LDC members would submit to the Government of India a Letter of Intent and details of officials who would be responsible for issuing Certificate of Origin. The Scheme is open to all 49 LDC (list of LDCs) members including 33 LDCs in Africa.

4. The Scheme has been notified vide Customs Notifications No. 96/2008-Customs and 100/2008-Customs (Non-Tariff) dated 13th August, 2008. Subsequent notifications issued are 99/2008, 7/2009, 24/2009, 45/2009, 59/2009, 86/2009, 63/2010, 64/2010, 67/2010 and 95/2010. All these notifications are available on Government of India (Central Board of Excise & Customs) website www.cbec.gov.in

- List of LDCs.

- Status of Letter of Intent and details of Certificate of Origin received from LDCs.

- Indicative formats for submission of Letter of Intent and details for Certificate of Origin.