Hindustan Times (Noida)

Centre considerin­g to shut down Tariff Commission

- HT Correspond­ent letters@hindustant­imes.com

The Union government may close down the Tariff Commission, which was constitute­d in 1997 as an independen­t body to look into tariff-related issues and recommend appropriat­e levels of tariffs for different products and industries, two persons aware of the developmen­t said on condition of anonymity.

“The government has taken an in-principle decision in this regard and the same will be announced after a final call is taken on this matter,” one of them said, without explaining the rationale for such a decision.

A second person mentioned suggested the institutio­n had “lost relevance” in the current context, and the move was part of the government’s exercise of de-duplicatio­n of work and reducing unnecessar­y laws and institutio­ns.

The Union commerce and industry ministry, which is the administra­tive ministry for the Tariff Commission, did not respond to an e-mail query on this matter.

The current Tariff Commission has amalgamate­d the functions of organisati­ons such as the erstwhile Tariff Board, the previous version of the tariff commission, and the Bureau of Industrial Costs & Prices (BICP).

The Tariff Board, an institutio­n of the pre-independen­ce period, advised the government on measures required for the protection of domestic industry. The previous tariff commission that was set up in 1951, by converting the Tariff Board, to protect Indian industry by checking duty variations and dumping of goods. It was wound up in 1976.

BICP was set up in 1970 to advise the government on various issues pertaining to cost reduction, improvemen­t of industrial efficiency, and pricing problems in relation to industrial cost. With the economic liberalisa­tion of in 1991, however, the government restructur­ed BICP.

In order to resolve tariff issues and to meet the commitment­s made in the World Trade Organisati­on (WTO), the Tariff Commission was setup in September 1997 under the Department of Industrial Policy and Promotion (DIPP), which was later renamed as the Department for Promotion of Industry and Internal Trade (DPIIT) under the ministry of commerce and industry.

 ?? BLOOMBERG ?? The move is part of the government’s exercise of deduplicat­ion.
BLOOMBERG The move is part of the government’s exercise of deduplicat­ion.

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