The CIABC, which represents alcoholic beverage manufacturers, said on Monday that the free trade deal between India and four European nations, known as EFTA, will assist boost the expansion of the domestic wine sector. Iceland, Liechtenstein, Norway, and Switzerland are all members of the European Free Trade Association (EFTA), news agency PTI reported.
The Confederation of Indian Alcoholic Beverage Companies (CIABC) Director General Vinod Giri stated that a time-bound decrease in customs taxes on a fair and sustainable basis will benefit the domestic industry.
According to the agreement’s provisions, tariff discounts on wine are identical to those granted to Australia, with no savings for wines priced below USD 5.
Wines priced between USD 5 and less than USD 15 will see a tariff decrease of 150 per cent to 100 per cent in the first year, then steadily reducing to 50 per cent over the next 10 years.
He stated that for wines priced at USD 15 or more, the initial duty reduction is from 150 per cent to 75 per cent, with a further reduction to 25 per cent after ten years.
He also stated that the agreement will assist the local business improve its quality by providing exposure to high-grade wines and potential investment opportunities.
He added that the 10-year time horizon for the progressive decrease of customs taxes is sufficient to let the local sector improve its competitiveness and product quality to compete with the best.
