G/MA/W/128  
G/IT/W/45  
 
17 November 2016  
(16-6317) Page: 1/2 
Committee on Market Access  
Committee of Participants on the Expansion of Trade in  
Information Technology Products  Original: English  
 
 REPLIES OF INDIA TO QUESTIONS RAISED BY EU, US AND JAPAN IN  
G/MA/W/120 AND G/IT/ W/42  
The following communication, dated 16 November 2016, is being circulated at the request of the 
delegation of India.  
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1. Could India confirm that the fou r products mentioned above fall under codes 8517 62 90 or 
8517 69 90? If products within the four categories subject to Customs Notification No. 11/2014 are 
classified under one of these two tariff lines, please specify which products are classified under 
each tariff line?  If they are not classified under those subheadings, what are the tariff lines under 
which India classifies the above -listed product categories?  
Reply to Question 1  
India reiterates its earlier stand that the main issue here is not the cl assification but the tariff 
binding commitments.  The goods in question are not covered under our ITA commitments.  
India signed the ITA -1 in the year 1997, and presented its schedule of commitment, which was 
subsequently certified in document WT/Let/181.  
In this regard, India explained in the CTG meeting held on 14 July 2016 that IT and telecom 
technologies have evolved over the years. New technologies, applications and equipment have 
been developed which were neither existent nor even conceived at the ti me of signing ITA 1 .   
Further, it may be noted that during the time when ITA -1 was negotiated, HS Code 8517 for 
telecom equipment referred to telecommunication apparatus for "carrier -current line systems & 
digital line systems".  However, in the last few years, several new technologies have been 
developed. Subsequently the said code has been expanded to include new technological 
developments.  Since our ITA -1 obligations are limited to those items that confirm to the 1996 
definition of products for "carrie r current line systems & digital line systems", new products that 
have lately been classified under this category cannot be considered as part of ITA 1 agreement.  
India is not intending to take any fresh commitment on goods for which India did not sign the  
ITA 1, and which have subsequently evolved. In fact, it is evident that to take care of new 
developments in technologies and new products, some Participants have concluded ITA 2. India is 
not a signatory of ITA 2.  
Also, it is reiterated that for each lin e of India's commitments under ITA, the Schedule clearly 
mentions its source, which in this case is WT/Let/181. India has not committed what is there 
beyond our ITA 1 commitment inscribed in WT/Let/181.  
2. Could India confirm that the four above -listed pr oduct categories subject to 
Customs  Notification No. 11/2014 are now subject to 10% duty rate?  G/MA/W/128 • G/IT/W/45  
 
- 2 - 
 
  Reply to Question 2  
Yes, all four categories  of products listed in Customs N otification No. 11/2014 dated 11 July 2014 
are subject to 10% Basic Customs Duty.  
3. What are India's WTO bound tariff commitments for each of the four above -listed product 
categories subject to Customs Notification No. 11/2014?  
4. How does India justify introducing 10% import duty for products falling under 8517 62 in 
light of India's co mmitment pursuant of the ITA and in light of its concessions in the WTO 
Schedule, recently updated in HS2007 which binds the whole subheading at 0% of duty rate?  
5. Should India consider that the products falling under 8517 62 are not covered by India's 
commitment pursuant of the ITA, could India clearly present the reasons?  
6. Should India consider that the products falling under 8517 69 are not covered by India's 
commitment pursuant of the ITA, could India clearly present the reasons?  
Replies to Questions  3 to 6  
As indicated in reply to Question 1 above, India considers that since 1 March 1997 (when India 
became a signatory to ITA -1), several new technologies have evolved in the telecom sector to 
address new functionalities required.   Accordingly, India co nsiders that tariff preference 
commitments under ITA -1 apply  only to the original commitment and not to the new technologies 
evolved over the years.   Hence, for the new technologies and the products which were not in 
existence prior to signing ITA -1, India , like any other WTO member, is entitled to impose duty on 
those specific new products.  
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