India to oppose continuation of moratorium on customs duties on e-com trade at WTO meet

‘Allowing moratorium to lapse is important for developing nations to preserve policy space for their digital advancement’

India will strongly oppose continuation of moratorium on customs duties on e-commerce trade at the World Trade Organisation (WTO)'s meeting in Geneva next month as it was adversely impacting developing countries, an official said.

The official said that allowing the moratorium to lapse was important for developing nations to preserve policy space for their digital advancement, to regulate imports and generate revenue through customs duties.

The WTO members had agreed not to impose customs duties on electronic transmissions since 1998 and the moratorium has been periodically extended at successive ministerial conferences (MC), which is the highest decision making body of the 164-member organisation.

"At the 12th MC next month, many WTO members are seeking temporary extension of the moratorium till 13th MC but India does not want this time to continue this further. India will take a hard stand this time on the matter," the official said.

India and South Africa on several occasions have asked the organisation to revisit the issue and have highlighted the adverse impact of the moratorium on developing countries.

In a joint communication submitted to the WTO earlier, both the countries had stated that all the issues on the e-commerce moratorium need to be revisited with ‘the utmost urgency and in its entirety’.

According to earlier communication from these two countries, the potential tariff revenue loss to developing countries is estimated at $10 billion annually.