The Economic Times
12,140.0084.2
Stock Analysis, IPO, Mutual Funds, Bonds & More

Indian import rules face US boric acid test at WTO

The US has challenged the Indian practice of allowing import of boric acid after ascertaining its end use as a non-tariff barrier in the World Trade Organisation (WTO).

, ET Bureau|
Last Updated: May 06, 2009, 01.37 AM IST|Original: May 06, 2009, 01.37 AM IST
0Comments
NEW DELHI: The US has challenged the Indian practice of allowing import of boric acid after ascertaining its end use as a non-tariff barrier in the World Trade Organisation (WTO).

India restricts import of the chemical for manufacturing insecticides on health grounds. But it allows its import for non-insecticidal uses such as in antiseptics, flame retardants and in power plants as a controlling agents for the fission rate of uranium. The agriculture ministry issues permit for importing boric acid after ensuring that the chemical is imported for non���insecticidal uses.

The US has asked whether the Indian government applies the same rule for domestic producers. The WTO agreement calls for national treatment or treatment equivalent to domestic producers for products imported from a member country.

India, in its reply to the query, stated domestic producers are subject to the ���rigorous requirement������ of obtaining registration before the Central Insecticide Board & Registration Committee of the agriculture ministry.

It is important to distinguish between boric acid supplied for insecticidal purpose and non-insecticidal purpose as for the former it is necessary to ensure that it is supplied to only authorised persons to prevent health hazards.

The US has been pointing out to India that traders of boric acid for non-insecticidal use remain unable to import boric acid for resale because they are not end-users of the product and cannot obtain no-objection certificates from ministries.

It has argued that local refiners, on the other hand, continue to be able to produce and sell non-insecticidal boric acid with a requirement only to maintain records showing they are not selling to insecticidal end users. It has, therefore, been urging India to withdraw the import permit system for the product.

India, on its part, clarified that domestic producers have to maintain equivalent measures such as an ���elaborate��� production and sales record.
Comments
Add Your Comments
Commenting feature is disabled in your country/region.

Other useful Links


Copyright © 2020 Bennett, Coleman & Co. Ltd. All rights reserved. For reprint rights: Times Syndication Service