ANIMAL HUSBANDRY INFORMATION

Trade

Trade regulations

The current level of applied import duties on milk and milk products range from 35 percent to 60 percent. There is no additional duty except on condensed milk as these items are not excisable. However, most of the items attract special additional duty (SADD) of 4 percent.

Applied duty on liquid milk and cream is 35 percent while bound duty stands at 100 percent as may be seen from the following chart. The applied and bound duty on skimmed milk powder (SMP) is pegged at 60 per cent. But the formula agreed at Hong Kong would necessitate slight cut in bound rates.

Applied and bound duty on milk and milk products

S. No	HS Code	Products	Applied Duty %	Bound Duty %
1	0401	Milk and Cream not concentrated nor containing added sugar or other sweetening matter	35	100
2	040210	In powder, granules or other solid forms, of a fat content, by weight, not exceeding 1.5%	60	60
3	040221	High fat milk powder Not containing added sugar or other sweetening matter	35	60
4	040229	Other (Tariff rate quota on low fat and high fat milk powder, granules Qty 10,000 tonnes at 15% duty)	35	40
5	0405	Butter and other fats and oil derived from milk dairy spreads	35	40
6	04059002	Melted butter (Ghee)	35	40

(Source: National Institute of Agricultural Extension Management)

Applied duty on melted butter (ghee) stands at 35 percent, ceiling binding is at 40 percent.
The bound rate of concentrated milk and cream has been raised to 60 percent. However, India had to give a tariff quota of 10,000 tonnes at a nominal duty of 15 per cent for the 60 percent bound rate.

Although there are no quantitative restrictions on imports of poultry meat, imports are constrained by numerous sanitary conditions and high import tariffs. Government policy allows imports of grandparent breeding stock and pureline stock on the basis of special permits issues by Department of Animal Husbandry, which attracts a 30.6% tariff. Feed additives are also mostly imported.

Trade treatment of poultry and feed ingredient imports

HTS Code	Commodity	Trade Policy	Tariff (%)
010511	Poultry grandparent stock	Subject to sanitary import permit	30.6
0207	Poultry meat (cuts and offal)	Subject to sanitary import permit	100.0
407	Eggs (Table/ Hatching)	Subject to sanitary import permit	30.6
0408	Egg yolks	Subject to sanitary import permit	30.6
100590	Corn for feed	TRQ	15.1/ 51.0
100700	Sorghum	State Trading	51.0
230120	Fish meal	Subject to sanitary import permit	5.1
2306	Oil meals	Free	15.3
23099020	Concentrates for compound feeds	Subject to sanitary import permit	30.6
230909010	Compounded poultry feed	Subject to sanitary import permit	30.6

(Source: FAS, USDA)

Trade promotion

The Agricultural and Processed Food Products Export Development Authority (APEDA) functioning under the Ministry of Commerce & Industry, Government of India since its inception in 1986 has been playing a major role in boosting exports of poultry products by extending financial support for purposes of setting up new units, modernization and upgradation of existing units.

Under the new Foreign Trade Policy (FTP) (2004-09) announced by the Ministry of Commerce & Industry, Government of India, a host of incentives have been given to boost agri-exports. These include (i) duty-free import of capital goods under the Export Promotion Capital Goods (EPCG) scheme, (ii) Duty credit scrip equivalent to 5 per cent of the f.o.b. value of exports, and the (iii) Launching of Vishesh Krishi Upaj Yojana.

For more visit: www.apeda.com and www.mofpi.nic.in

For more about Livestock trade...

Last updated: 22-3-2007

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