WORLD TRADE  
ORGANIZATION  WT/COMTD/RTA/4/1 
29 January 2010 
 (10-0463) 
Committee on Trade and Development  
  
 
   
 
 
FACTUAL PRESENTATION 
 
Preferential Trade Agreement  
between  
Chile and India 
(Goods) 
 
Report by the Secretariat 
 
 
 
 This report, prepared for the considera tion of the Preferential Trade Agreement 
between Chile and India has been drawn up by the WTO Secretariat on its own 
responsibility and in full consultation with th e Parties.  The report has been drawn up 
in accordance with the rul es and procedures contained in the Decision for a 
Transparency Mechanism for Regiona l Trade Agreements (WT/L/671).  
 Any technical questions arising from this report may be addressed to Rohini Acharya 
(tel: +41 22 739 5874).  WT/COMTD/RTA/4/1 
 Page iii 
 
 
  TABLE OF CONTENTS 
 
 
  Page 
 
I. TRADE ENVIRONMENT 1  
A. OVERVIEW  1 
B. BILATERAL MERCHANDISE TRADE  1  
II. CHARACTERISTIC ELEMENTS OF THE AGREEMENT 4  
A. BACKGROUND INFORMATION  4  
B. NATIONAL TREATMENT AND MARKET ACCESS PROVISIONS OF THE AGREEMENT  4  
1. Import duties and charges, and quantitative restrictions 4  
(a) General provisions 4  
(b) Liberalization of trade and tariff lines 4  
(c) Chile's liberalization schedule 5  
(d) India's liberalization schedule 8  
2. Rules of origin 10  
3. Export duties and charges, and quantitative restrictions 13  
C. REGULATORY PROVISIONS OF THE AGREEMENT  13  
1. Standards 13  
(a) Sanitary and phytosanitary measures 13  
(b) Technical barriers to trade 13  
2. Safeguard mechanisms 14  
(a) Global safeguards 14  
(b) Bilateral safeguards 14  
(c) Special safeguards 15  
3. Anti-dumping and countervailing measures 15  
4. Subsidies and State-aid 15  
5. Customs-related procedures 16  
(a) Customs valuation 16  
(b) Customs cooperation 16  
6. Other provisions 16  
D. SECTOR -SPECIFIC PROVISIONS OF THE AGREEMENT  16  
E. GENERAL PROVISIONS OF THE AGREEMENT  16  
1. Transparency 16  
2. Current payments and capital movements 16  
3. Exceptions 16  
4. Accession and termination 16  
5. Institutional framework 17  
6. Dispute settlement 17  
7. Relationship with other agreements concluded by the Parties 18  
8. Other 20  
ANNEX I 21 
ANNEX II 29 
 
  WT/COMTD/RTA/4/1 
 Page 1 
 
 
  I. TRADE ENVIRONMENT 
A. OVERVIEW  
1. The preferential trade Agreement is India's f ourth and Chile's twelfth bilateral agreement 
notified to the WTO.  It is India's third and Ch ile's first bilateral agreement notified under the 
Enabling Clause.  The countries have considerably different economic structures:  India's GDP was 
estimated at about US$1.17 billion and Chile's US $163,915 million in 2007, while Chile has a higher 
trade to GDP ratio of 76.2 compared to 44.7 for Indi a.  Their different levels of exposure to world 
trade are also reflected in the ranks in world trade:  in 2007, Chile ranked 40th in world exports while 
India ranked 26th (including intra-EU trade), while their ranks in terms of imports from the world 
were, respectively 46th and 18th. 
2. The structure of their major exports are also considerably different.  The majority of India's 
exports in 2007 were comprised of manufactures (63.6%), followed by fuels and mining products 
(24.3%) and agriculture (11%).  Chile, on the ot her hand exports mainly fuels and mining products 
(63.6%), followed by agriculture and manufactures (20% and 9.8% respectively). 
B. BILATERAL MERCHANDISE TRADE  
3. Developments in bilateral trade in recent years show that Chile has had a growing 
merchandise trade surplus both with the world and with India since the ear ly part of the decade 
(Chart I.1).  Although at around the same level in 1997, growth in imports from India has remained 
sluggish (increasing from US$66 million in 1997 to US$208 million in 2007), while Chile's exports 
have grown by over 50% from US$74 million to US$2.2 billion in the same period. 
010203040506070
1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 20070.00.51.01.52.02.5US$billion US$billionChart I.1 - Chile: Merchandise imports from and exports to world 
and India, 1997-2007
Source : UNSD, Comtrade database.Imports from India
Exports to IndiaTotal imports
Total exportsLeft hand scale: Right hand scale:
 
4. India's merchandise trade deficit with the worl d has continued to widen steadily since 2002, 
as has its trade deficit with Chile which grew signi ficantly during the last two years of this period 
(Chart I.2). WT/COMTD/RTA/4/1 
Page 2  
 
  0306090120150180210240270300
1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 20070.00.51.01.52.02.5US$billion US$billionChart I.2 - India: Merc handise imports from and exports to world 
and Chile, 1997-2007
Sources : UNSD, Comtrade database.Imports from Chile
Exports to ChileTotal imports
Total exportsLeft hand scale: Right hand scale:
 
5. As pointed out above, their export structures are also considerably different.  Chart 1.3 shows 
the product composition of merchandise trade on average for 2004-2006 by HS Section.  Of Chile's 
exports, the largest of which are ba se metals and minerals (accoun ting for 61.5% of total exports), 
India mainly imports mineral products, which make up 93.8% of its imports fro m Chile.  Minerals are 
also the largest category of imports by India from the world.   
6. In comparison nearly three-quarters of India's gl obal exports are made up of minerals, textiles, 
precious metals, base metals and chemicals (toge ther accounting for 68.2% of total merchandise 
exports);  of these textiles and chemicals make up 50.2% of Chile's imports from India, with 
machinery and vehicles accounting for an additional 20.3% of imports from India.  WT/COMTD/RTA/4/1 
 Page 3 
 
 
  Chart I.3
Chile and India: product composition of merchandise  trade, annual average 
2004-2006
Chile's imports from India India's imports from Chile
Sources:  UNSD, Comtrade database.Per cent
Total:  US$133 million Total:  US$897 million
Total:  US$29 billion Total: US$147.8 billion
Total:  US$41.8 billion Total:  US$103.1 billionChile's global exports India's global exportsChile's global imports India's global imports 
Machinery
17.4Plastics 5.4
Minerals 
17.3
Vegetables 6.0Chemicals 3.3
Animals 1.6
Base metals
35.5Other 
5.7Other 
5.9
Animals 6.9Base metals 8.1
Minerals 35.4
Chemicals 8.7
Chemicals 4.5
Base metals 
10.5 Plastics 4.6
Minerals 26.0Animals 2.2Other
4.4 Other 2.0
Vehicles  3.9Other 
6.1Machinery 11.0
Machinery 6.9Minerals 25.1
Machinery 22.9
Vehicles  11.3Textiles 4.5Prepared foods 2.7
Textiles 16.4Optical 2.0Other 
7.4
Plastics 2.2
Precious stones  14.4
Plastics 3.2Textiles 26.9Miscellaneous 2.6
Chemicals 10.1Vehicles 9.3Raw hides 8.1
Base metals 5.8Vegetables 2.0
Chemicals 8.0Vehicles 5.1
Precious stones 
14.9Base metals 6.5
Prepared foods 5.6Minerals 93.8Prepared foods 0.9
Optical 1.8
Vegetables 4.9Prepared foods 2.2Chemicals 23.3Optical 1.7
Pulp of wood 2.2
Articles of wood  4.3Pulp of wood  4.1Precious stones 1.4Textiles 1.7
Raw hides 1.8
 WT/COMTD/RTA/4/1 
Page 4  
 
  II. CHARACTERISTIC ELEMENTS OF THE AGREEMENT 
A. B
ACKGROUND INFORMATION  
7. The preferential trade Agreement (henceforth "the Agreement") between Chile and India 
(henceforth "the Parties") was signed on 8 March 2006 in New Delhi, and entered into force on 
17 August 2007 for Chile and due to administrativ e reasons on 11 September 2007 for India.  The 
Agreement is of indefinite duration.  It was notif ied to the WTO by the Parties on 13 January 2009 
under paragraph 4(a) of the Enabling Clause.  The te xt of the Agreement, along with its Annexes is 
available on the Parties' websites.   
8. The Agreement is composed of 23 Articles and fi ve annexes which form an integral part of 
the Agreement.  The five Annexes, cover respectiv ely, India and Chile's list of products for which 
preferences are offered;  the rules of origin;  pref erential safeguard measures;  dispute settlement;  and 
rules of procedure. 
9. The Agreement has no transition period.  Impl ementation of tariff concessions took place at 
entry into force of the Agreement (2007).  
B. NATIONAL TREATMENT AND MARKET ACCESS PROVISIONS OF THE AGREEMENT  
1. Import duties and charges, and quantitative restrictions 
(a) General provisions 
10. The Agreement aims inter alia  to promote through the expansion of trade, the harmonious 
development of bilateral economic re lations;  provide fair conditions of  competition in bilateral trade;  
pay due regard to the principle of reciprocity in  the implementation of the Agreement; and contribute 
to the harmonious development a nd expansion of world trade.  E ach party agrees to accord national 
treatment to the goods of the other party in acco rdance with Article III of GATT 1994 (Article V). 
11. Under Article IV of the Agreement, the pa rties agree to establish a preferential trade 
agreement "for the purpose of free movement of goods  between their countries through elimination or 
reduction of tariffs on the movement of goods in acc ordance with the provisions of Annexes A and B.  
The parties may consider accelerating the elimination or reductions of these tariffs in their schedules, 
or to include new products in their schedules, upon the request of either party.  Any agreement to do 
so will supersede any duty rate or staging category in their Schedules when approved by both parties 
in accordance with the procedures of and decisi ons taken by the Joint Administrative Committee 
(see below).   
12. Except as provided by the Agreement and in accordance with Article XI of the GATT 1994, 
the parties agree not to adopt or maintain any prohibition or restriction on imports from or exports to 
or sale for export to the other party (Article VIII). 
(b) Liberalization of trade and tariff lines  
13. Trade in goods and liberalization is classified under the Harmonized System (HS) 2002 
nomenclature.  Tariff concessions by both Parties are provided at the HS 8-digit level. 
14. The Agreement for the most part does not envi sage the elimination of tariffs but instead 
reduces tariffs on a margin of preference based on the MFN tariff applicable in 2007.  Each Party 
made commitments as indicated in Annex A for I ndia and Annex B for Chile, to reduce tariffs by a 
margin of preference ranging from 15% to 50% for India and from 10% to 50% for most products for  WT/COMTD/RTA/4/1 
 Page 5 
 
 
  Chile;  in addition Chile eliminated tariffs on four  lines at the HS 8-digit level as a result of the 
Agreement.  The tariff reductions took effect on 17 August 2007 for Chile and on 11 September 2007 
for India. 
(c) Chile's liberalization schedule 
15. Chile has 7,902 tariff lines at the HS 8-digit level, all of which have ad valorem  rates of duty.  
As shown in Table II.2, before the entry into force of the Agreement, 35 tariff lines in Chile's tariff 
were duty free on a MFN basis.  An additional 4 ta riff lines became duty free for imports from India 
as a result of the Agreement in 2007 accounting for 0.5%  of the average value of Chile's total imports 
from India during 2004-2006.  The lines concern medi cal equipment and plastics, and rubber.  In 
addition, 292 tariff lines, accounting for 75.7% of Chile's imports from India during the period 
2004-2006 are subject to duty reductions under the Agre ement.  The number of tariff lines that remain 
dutiable (at MFN rates of duty) are 7,571 or 95.8%  of the tariff, accounting for 23.8% of Chile's 
imports from India in 2004-06.  
Table II.2 
Tariff elimination and reduction commitments unde r the Agreement and corresponding average trade 
A. Chile 
Duty phase-out period Number of lines % of total lines in 
Chile's tariff schedule Value of Chile's imports 
from India (2004-2006) 
in million US$ % of Chile's total 
imports from India 
2004-2006 
MFN duty free (2007) 35 0.4 0.0 0.0 
Duty-free under the 
Agreement 4 0.1 0.6 0.5 
Reduced rates 292 3.7 100.8 75.7 
Remain dutiable* 7,571 95.8 31.7 23.8 
Total 7,902 100.0 133.1 100.0 
* Equal to MFN rate. 
Note: Based on the HS 2002 nomenclature. 
 
Source :  WTO estimates based on data provided by Chile. 
 
16. The details of this tariff elimination and reduction are shown in Table II.3 below by 
HS Section.  The lines for which duties were el iminated by Chile are found in Sections XVIII 
(precision equipment) and VII (plastics and rubber).   MFN rates were reduced for products relating 
mainly to textiles and clothing (Section XI), chemicals and chemical products (Section VI), base 
metals and base metal products (Section XV) and m achinery (Section XVI).  As a result of the 
Agreement, there is no difference between Chile's overall average applied MFN tariff and the average 
tariff applied to those tariff lines which remain dutiable under the Agre ement.  In the HS Sections 
where tariff reductions have taken place under th e Agreement, however, imports from India are 
subject to slightly lower average tariff rates;  such  reduced averages relate mainly to HS Sections VI, 
VIII, XI, XII, XIV and XX. 
Table II.3 
Chile:  Tariff elimination and reducti on under the Agreement, by HS section 
Number of 
duty-free 
lines  HS section and 
description  MFN 
average
% Total No of 
lines  MFN 
2007  
2007 No. of lines 
with reduced 
rate Remain 
dutiable*  Average Final 
Tariff*  
I Live animals and 
animal products 6.2 567   
1 567 6.2 
II Vegetable products 6.0 397   7 397 6.0 
III Animal or vegetable 
fats and oils 6.0 65   
 65 6.0 
IV Prepared foods etc. 6.0 398    398 6.0 
Table II.3 (Cont'd)  WT/COMTD/RTA/4/1 
Page 6  
 
  Number of 
duty-free 
lines  HS section and 
description  MFN 
average
% Total No of 
lines  MFN 
2007  
2007 No. of lines 
with reduced 
rate Remain 
dutiable*  Average Final 
Tariff*  
V Minerals 6.0 191   1 191 6.0 
VI Chemicals and 
chemical products 6.0 1,190   
61 1,190 5.9 
VII Plastics and rubber 6.0 307  1 12 306 6.0 
VIII Hides and skins 6.0 86   12 86 5.8 
IX Wood and articles 6.0 142   3 142 6.0 
X Pulp, paper etc. 5.9 235 4   231 6.0 
XI Textiles and textiles 
articles 6.0 1,171   
106 1,171 5.9 
XII Footwear, headgear 6.0 115   10 115 5.9 
XIII Articles of stone 6.0 180   2 180 6.0 
XIV Precious stones, 
etc. 6.0 59   
3 59 5.9 
XV Base metals and 
base metals products 6.0 657   
28 657 5.9 
XVI Machinery 6.0 1,266 2  20 1,264 6.0 
XVII Transport 
equipment 5.5 343 29  
9 314 6.0 
XVIII Precision 
equipment 6.0 290  3 
7 287 6.0 
XIX Arms and 
ammunition 6.0 23   
 23 6.0 
XX Misc. 
manufactured articles 6.0 213   
10 213 5.9 
XXI Works of art, etc. 6.0 7    7 6.0 
Total 6.0 7,902 35 4 292 7,863 6.0 
 
* Includes the tariff lines with reduced rate. Note: Based on the HS 2002 nomenclature. 
 
Source : WTO estimates based on data provided by Chile. 
 
17. Chart II.1 below shows the average of those lines subject to tariff reductions under the 
agreement with the corresponding MFN rates by HS Section.  The comparison is based only on those 
lines for which tariffs are still applied on a preferen tial basis and their corresponding MFN rates.  As a 
result of the Agreement, Chile's average tariff on dutiable lines for imports from India has fallen most 
for Sections VI and XII (chemicals and footwear a nd headgear at 3.5% and 4.6% respectively).  For 
the remaining Sections the average preferential tariff  for these lines is 4.8% (slightly higher at 5.2% 
for textiles and clothing) compared to the MFN av erage of 6%. The same comparison is made on the 
basis of HS Chapter in Table AI.5.   
18. Chart II.2 compares the average rate for those ta riff lines that remain subject to duty under the 
Agreement with their corresponding MFN rates by HS Section.  The preferential averages are slightly 
lower for Section VIII (5.8%) and Sections VI, XI, XII, IV and V (5.9%) compared to the 
corresponding MFN average for these Sections (6%).  WT/COMTD/RTA/4/1 
 Page 7 
 
 
  0.0 2.0 4.0 6.0 8.0XXIXXXIXXVIIIXVIIXVIXVXIVXIIIXIIXIXIXVIIIVIIVIVIVIIIIIIChart II.1
Chile:  Average of dutiable rates, by HS Section
HS Section  
Source : WTO Secretariat estimates, based on data provided by Chile.Avera ge rate of dut y (%)
MFN Preferential
 
02468 1 0XXIXXXIXXVIIIXVIIXVIXVXIVXIIIXIIXIXIXVIIIVIIVIVIVIIIIIIChart II.2
Chile:  Average of reduced rates, by HS Section
HS Section  
Source : WTO Secretariat estimates, based on data provided by Chile.Avera ge rate of dut y (%)
MFN Preferential
 WT/COMTD/RTA/4/1 
Page 8  
 
  (d) India's liberalization schedule 
19. India's applied MFN tariff in 2007 contained 11,274 lines at the HS 8-digit level.  Of these, 
10,629 (93.8% of the tariff) have ad valorem  tariff rates, while 700 lines are subject to alternate rates, 
consisting of an ad valorem  component and a specific duty component, and two lines are subject to 
specific rates of duty. As shown in Table II.4 below,  before the Agreement's entry into force, India 
provided duty free access on an MFN basis for 242 tariff lines corresponding to 0.1% of India's 
average imports from Chile during the period 2004-2006.  The Agreement does not remove duties on any tariff lines, but reduces duties on 181 tariff lines, which is around 1.6% of the tariff and 
corresponds to 94.8% of India's imports from Chile during 2004-2006.  As a result, Chilean exporters 
will face zero MFN rates and reduced preferential rat es of duty on 3.7% of I ndia's tariff, while duty 
rates for 96.3% of the tariff will remain unchanged.  
Table II.2 
Tariff reduction commitments under the Ag reement and corresponding average trade 
A. India 
Duty phase-out period Number of lines % of total lines in 
India's tariff schedule Value of India's imports 
from Chile (2004-2006) 
in million US$ % of India's total 
imports from Chile 
2004-2006 
MFN duty free (2007) 242 2.1 0.7 0.1 
Reduced rate 181 1.6 856.1 94.8 
Remain dutiablea 10,908 96.3 46.6 5.2 
Total 11,331 100.0 903.3 100.0 
 
a Equal to MFN rate 
Note: Based on the HS 2007 nomenclature. 
 Excludes data beyond HS chapter 97. Source :  WTO estimates based on data provided by India. 
 
20. Table II.5 below shows the extent of tariff line liberalization according to HS Sections.  While 
tariffs are not eliminated on any tariff lines, reduced  tariffs for imports from Chile apply to 181 lines, 
which are found mainly in HS Sections I (live an imals and animal products),  IX (wood and articles), 
VI (chemicals and chemical products ) and IV (prepared foods).  The overall average preferential tariff 
that applies to those lines which remain subject to duty is 13.2%. 
Table II.5 
India: Tariff reduction under the Agreement, by HS section 
HS section and 
description  MFN 
average
% Total No. of lines  MFN 2007 
duty-free  No. of lines with 
reduced rate Remain dutiablea Average 
Final 
Tariff a 
I Live animals and 
animal products 30.9 349  70 349 29.7 
II Vegetable products 36.2 558 15 1 543 37.2 
III Animal or vegetable 
fats and oils 63.8 119   119 63.8 
IV Prepared foods etc. 45.5 406  24 406 45.1 
V Minerals 6.2 313 6 2 307 6.3 
VI Chemicals and 
chemical products 8.6 2,243 6 28 2,237 8.6 
VII Plastics and rubber 9.6 585   585 9.6 
VIII Hides and skins 8.5 134 21 7 113 9.8 
IX Wood and articles 9.1 197  36 197 8.7 
X Pulp, paper etc. 9.3 274 10 8 264 9.6 
XI Textiles and textiles 
articles 10.0 1,901  3 1,901 10.0 
XII Footwear, headgear 10.0 105   105 10.0 
XIII Articles of stone 9.5 263   263 9.5 
XIV Precious stones, 
etc. 10.0 91    91 10.0 
Table II.5 (Cont'd)   WT/COMTD/RTA/4/1 
 Page 9 
 
 
  HS section and 
description  MFN 
average
% Total No. of lines  MFN 2007 
duty-free  No. of lines with 
reduced rate Remain dutiablea Average 
Final 
Tariff a 
XV Base metals and 
base metals products 7.0 1,264  1 1,264 7.0 
XVI Machinery 7.2 1,662 153  1,509 7.9 
XVII Transport 
equipment 29.9 263 3 1 260 30.2 
XVIII Precision 
equipment 8.1 353 25  328 8.7 
XIX Arms and 
ammunition 10.0 20   20 10.0 
XX Misc. 
manufactured articles 10.0 214   214 10.0 
XXI Works of art, etc. 8.2 17 3  14 10.0 
Total 13.0 11,331 242 181 11,089 13.2 
a Includes only tariff lines which remain subject to duties under the Agreement. 
 Note Based on the HS 2007 nomenclature.  The tariff calculations  are based on the tariff submitted by the authorities which inc ludes 
standard rates and also "exemption rates" where applicable.  Excludes data beyond HS chapter 97. 
 Source : WTO estimates based on data provided by India. 
 
21. Chart II.3 compares the average tariff that app lies to lines subject to tariff reductions under 
the Agreement, with their corresponding MFN average according to HS Section.  It shows that with 
the exception of Sections I, IV, V, VIII, and IX the corresponding MFN average tariff for those lines 
is exactly the same as for those lines that remain dutiable on a preferential basis.  The largest 
difference between the average MFN and preferential ra tes is 1.2 percentage points in Section I (live 
animals and animal products).  A comparison between  the average preferential  rate on dutiable lines 
and their corresponding MFN average rates is presented by HS Chapter in Table AI.6. 
0 1 02 03 04 05 06 07 0XXIXXXIXXVIIIXVIIXVIXVXIVXIIIXIIXIXIXVIIIVIIVIVIVIIIIIIChart II.3
India:  Average of dutiable rates, by HS Section
HS Section  
Source : WTO Secretariat estimates, based on data provided by India.Avera ge rate of dut y (%)
MFN Preferential
 WT/COMTD/RTA/4/1 
Page 10  
 
  22. Chart II.4 compares the average of those tariff ra tes that were reduced under the Agreement, 
with their corresponding MFN rates also by HS Secti on.  The preferential average tariff rate is lower 
than the corresponding MFN rate for HS Sections I, II, IV-VI, VIII-XI, XV and XVII and ranges from 
0.6 to 6.1 percentage points.   
0 5 10 15 20 25 30 35 40XXIXXXIXXVIIIXVIIXVIXVXIVXIIIXIIXIXIXVIIIVIIVIVIVIIIIIIChart II.4
India:  Average of reduced  rates, by HS SectionHS Section  
Source : WTO Secretariat estimates, based on data provided by India.Avera ge rate of dut y (%)
MFN Preferential
 
2. Rules of origin 
23. The Agreement's rules of origin are described in Article VII and Anne x C.  Under Annex C, 
goods considered to be originating in one of the Part ies are:  goods wholly produced or obtained in the 
territory of the Party1;  and goods that are not wholly produced in the territory of the Party but whose 
                                                      
1 These are:  (a) mineral products extracted from the soil or subsoil of any of the Parties, including its 
territorial seas, continental shelf or exclusive economic zone;  (b) plants (including forestry products, fruits, flowers, vegetables, trees, sea weeds, and fungi) and plant products grown, harvested, picked or gathered there 
including in its territorial seas, continental shelf or exclusive economic zone;  (c) live animals (all animal life, 
including mammals, birds, fish, crustaceans, molluscs and reptiles) born and raised there, including by 
aquaculture;  (d) products from animals;  (e) animal s and products thereof obtained by hunting, trapping, 
collecting, fishing or and capturing there, including its in land waters, territorial seas, continental shelf or in the 
exclusive economic zone;  (f) products of seafishing a nd other marine products taken from the high seas by its 
vessels as defined in Article 1(any ship engaged in commercial fishing or commercial exploitation of marine 
products on the high seas registered with and flying the flag of a Party with at least 50% of its equity owned by 
citizens and/or government of that party);  (g) goods processed and/or made on board its factory ships as defined in Article 1 (any vessels used for processing and/or making on board products exclusively from the products in 
(f) and (g)) exclusively from the products mentioned in (e) and (f) above;  (h) waste and scrap resulting from 
utilization, consuming or manufacturing operations conducted in the territory  of any of the Parties, provided 
they are fit only for the recovery of raw materials;  and (i) goods produced in any of the Parties exclusively from 
the products specified in (a) to (h) above (Article 4 of Annex C).  WT/COMTD/RTA/4/1 
 Page 11 
 
 
  content of non-originating materials by value do es not exceed 60% of the FOB value of the products 
produced or obtained and the final process of manufact ure takes place in the territory of the exporting 
Party.2  To qualify for preferences, such non-originati ng materials are considered to be sufficiently 
worked or processed if there is a change in tariff cl assification of the final product at the HS heading 
level (4-digit) from those in which all the non-orig inating materials used in the manufacture of the 
product are classified.  Accessories, spare parts and tools which are part of the equipment they are 
dispatched with, are considered as originating if th e good they are part of is originating (Article 7).  
Non-originating materials which are identical and in terchangeable with originating materials must be 
segregated (either physically or where this invol ves considerable costs or other difficulties, 
"accounting segregation" can be used), according to origin, during storage.  Sets are regarded as 
originating when all component products are orig inating;  sets which contain non-originating goods, 
may qualify for preferences provided that the CIF va lue of the non-originating goods does not exceed 
15% of the FOB price of the set (Article 9). 
24. Processes or operations considered insufficient to  confer originating status even though these 
conditions are met are described in Article 6 and include: preserving operations to ensure good 
condition during transportation and storage;  diluti on in water or any other substance which does not 
substantially alter the product characteristics;  si mple operations such as sifting, screening etc.;  
simple change of packaging;  simple packing in bo ttles, cans, flasks etc.; a ffixing or printing marks, 
labels, logos and other distinguishing signs;  simple cleaning;  simple assembly of parts to constitute a 
complete article or disassembly (in accordance with General Rule 2a of the HS);  slaughter of animals;  simple mixing of products, provided th e characteristics of the resulting product are not 
essentially different from those of the products mixed;  oil application;  and a combination of any of 
these operations.  Packages and packing materials for retail sale are not taken into account for 
determining whether the non-originating materials fulf il the change in tariff classification requirement 
(Article 10), while containers and packing materials used for transporting a product shall not be taken 
into account for determining the origin of any good (Article 11). 
25. To benefit from preferential treatment, origin ating goods must be transported directly 
between the Parties, defined as: (a) they are trans ported through the territory of one or both Parties;  
they are in transit through one or more territories of non-Parties, with or without transhipment or 
temporary warehousing in that non- Party under the surveillance of its customs authorities, provided 
that the transit is justified for geographical or tr ansportation reasons, the pr oducts are not intended for 
trade, consumption, use or employment in the country of transit or the products do not undergo 
operations other than unl oading, reloading or any operation de signed to preserve them in good 
condition;  and (c) the period of transit does not exce ed six months and the goo ds involved bear proof 
of having been under customs surveillance through necessary endorsements in the relevant customs 
documents. 
26. The certificate of origin to accompany goods being imported is valid for only one import 
operation concerning one or more goods, and must be  submitted within 30 days from the date of 
clearance of the goods in the importing Party.  The certificate is issued upon the submission of the 
commercial invoice and a sworn declaration by the final producer certifying that the good fulfils the 
origin criteria under the Agreement.
3  The Certificate shall be issued no later than five working days 
after the request is made and will be valid for one year from its date of issue. 
                                                      
2 The customs value of the non-originating material is calculated as its CIF value at the time of import 
where this can be proved;  or (also for products of undetermined origin) the earliest ascertained price paid in the 
territory of the Party where the pro cessing of the final good takes place (Articles 5, paragraphs 3 and 4). 
3 The declaration must contain, in addition to details about the producer and a description of good 
being exported, the FOB value of the good as well as materials, components, and/or parts originating from the WT/COMTD/RTA/4/1 
Page 12  
 
  27. In cases of reasonable doubt, additional informati on needed for verifying the origin of goods 
may always be requested of the relevant government  authorities of the exporting Party by the customs 
authorities of the importing Party.  The informati on requested should be provided within 30 days from 
the receipt of the request, which can be extended through mutual consultation for a further period of 
30 days in justified cases (Article 17).  During this time, however, the customs authorities of the 
importing Party may not deny entry for the goods concerned, although they may deny preferential 
treatment, request a guarantee (no higher than the MFN customs duty rate)
4, or take any other action 
necessary to preserve fiscal interests, as a pre- condition for the completion of import procedures 
(Article 16).  If the information provided by the ex porting Party is satisfactory, the customs authorities 
of the importing Party must release the importer fro m the guarantee within 30 days or promptly 
refund the excess duty paid, in accordance with the domestic laws of the Parties (Article 17). 
28. If the requested information is not provided w ithin the timeframes mentioned above, or the 
information is insufficient to clarify any doubt abou t the origin of the good, the competent authorities 
of the importing Party may initiate an investigati on within 60 days from the date of their original 
request for information.  The customs authorities ma y not, during the period of investigation, suspend 
any new imports of identical goods from the same exporter or producer but may deny preferential 
treatment, request a guarantee or take any actio n necessary to preserve fiscal interests, as a 
pre-condition of import of these products. 
29. If the investigation reveals that the goods do not qualify as originating, non-preferential duties 
are to be levied on those goods and the importing Party can deny preferential treatment to new 
imports of identical goods from the same produ cer until it is clearly demonstrated that the 
manufacturing conditions had been modified to fu lfil the origin requirements of the Agreement 
(Article 30).  The authorities have 45 days from any information of such a modification in which to 
communicate their decision on qualification of the goods;  if a new verification visit to the producer's premises is required, such as decision can be made within 90 days of receipt of the information.  Failure by the two Parties to agree on whether the modifications qualify the goods concerned for 
preferential treatment, can be addressed furthe r through the Agreement's Dispute Settlement 
Mechanism provisions.   
30. In addition to such investigations, any Party may request the other Party to investigate the 
origin of a good imported by the latter from any Party, if there are "well-founded" reasons for suspecting that its products compete with imported pr oducts that do not meet the Agreement's origin 
requirements.  In such cases, the Party requestin g the investigation must provide the relevant 
information to the investigating Party within 45 days of having made the request.  The importing 
Party must give the requesting Party notice of any initiation of an investigation (Article 31).  If the 
measure is deemed to be inconsistent with the ru les of origin of the Agreement, the exporting Party 
may within 60 days from the receipt of the comm unication, request consultations in the Joint 
Administration Committee and or/technical technical advice with the aim of establishing whether the 
goods under investigation fulfil the rules of origin of the Agreement (Article 33).  The Agreement 
requires each Party to adopt or maintain meas ures that provide for the imposition of civil, 
administrative, and where appropriate criminal sa nctions for violations of its customs laws and 
regulations (Article 35). 
                                                                                                                                                                    
 
exporting Party, originating from the other Party and non-originating materials, and their corresponding 
HS tariff headings, where possible, and a description of the manufacturing process (Article 15.1). 
4 If a guarantee is required, its amount shall not be higher than the value of the applicable customs 
duties on the import of the product from third countrie s, according to the legisla tion of the importing country 
(Article 16.6).  WT/COMTD/RTA/4/1 
 Page 13 
 
 
  3. Export duties and charges, and quantitative restrictions 
31. Export restrictions and prohibitions are prohibite d under Article VIII of the Agreement.  Chile 
does not maintain export restrictions or taxes.  India maintains export taxes, on an MFN basis, on iron ores, chromium ores, hides and skins and ferrous waste and scrap ranging from 5% to 25% (Table 
AII.1 in Annex II below). 
C. R
EGULATORY PROVISIONS OF THE AGREEMENT  
1. Standards 
(a) Sanitary and phytosanitary measures 
32. The parties affirm their existing rights and obligations under the WTO Agreement on Sanitary 
and Phytosanitary Measures (SPS Agreement) (Article XIII).  They also agree to facilitate bilateral 
cooperation and to promote and develop trade in anim als, animal products, plants, plant products and 
food products, prevent the introduction or spread of pests or diseases and enhance plant, animal and 
food safety. 
33. The parties agree to exchange information on the application of SPS measures, regulations, 
standards, procedures, models of certification and technologies relating to animal and plant 
quarantine, food safety, biosecurity, risk management and international standards.  They also agree to 
exchange information on the implementation of th e SPS Agreement and intern ational SPS standards, 
guidelines and recommendations by the Internationa l Office of Epizootics, the International Plant 
Protection Convention and the Codex Alimentarius.   
34. In case a party considers that the other party h as taken measures that are likely to create, or 
have created, an obstacle to trade, they agree to hold consultations to find an  appropriate solution.  
Any issues that cannot be resolved through cons ultations, are to be referred to the Joint 
Administration Committee through a notification.  Activities on cooperation and consultations are to 
be carried out by the Director of Bilateral Ec onomic Relations, DIRECON, Ministry of Foreign 
Affairs, for Chile and by the Joint Secretary, La tin America Division, Department of Commerce for 
India.  Their activities shall be reporte d to the Joint Administration Committee. 
35. In addition to cooperation, the parties will al so try and explore the possibility of mutual 
recognition agreements in mutually agreed areas. 
(b) Technical barriers to trade 
36. Under Article XII, the parties affirm their exis ted rights and obligations with respect to each 
other under the WTO Agreement on Technical Barriers to trade.  The also agree to strengthen cooperation in the field of standards, technical regul ations and conformity assessment, with a view to 
increasing mutual understanding of their respective systems and facilitating access to their respective 
markets.  This would include technical cooperation between regulatory agencies inter alia , 
information sharing, training programmes to impr ove and update technical knowledge, facilitation of 
the acceptance of technical regulations and c onformity assessment procedures including through 
mechanisms such as mutual recognitio n agreements in mutually agreed  areas.  Should there be any 
measures taken by either party that the other part y considers likely to create or have created, an 
obstacle to trade, the parties agree to hold c onsultations to find an  appropriate solution. 
 
 WT/COMTD/RTA/4/1 
Page 14  
 
  37. The relevant agencies for activities relating to  technical barriers to trade issues are the 
Director of the Foreign Trade Department in  the Ministry of Economy, for Chile, and the 
Joint Secretary, Latin America Division, Department of Commerce, for India.  Their activities shall be 
reported to the Joint Administ ration Committee (see below). 
2. Safeguard mechanisms 
(a) Global safeguards 
38. There are no specific provisions on global safeguard measures:  the parties retain their rights 
and obligations to apply safeguard measures cons istent with Article XIX of GATT 1994 and the WTO 
Agreement on Safeguards.  The Agreement does not c onfer any additional rights or obligations on 
them with regard to actions taken pursu ant to these WTO provisions on safeguards. 
(b) Bilateral safeguards 
39. Bilateral safeguard provisions ar e permitted under Article XI of the Agreement.  Procedures 
for taking bilateral safeguard measures are given in  Annex D.  Either party can take a bilateral 
measure when the imports of a product receiving preferential treatment under the Agreement have 
increased in such quantities, abso lute or relative to, domestic pr oduction in the importing party under 
such conditions that imports of that good from the exporting party alone constitute a substantial cause 
of serious injury or threat thereof, to the importing party's domestic industry.  Under such 
circumstances, the compet ent authorities in the importing party must carry out an investigation under 
the procedures established in Annex D.  The me asures may not be applied simultaneously for a 
product for which global safeguard measures are in pl ace and also may not be applied in the first year 
after the tariff preferences under the Agreement come into force (Art. 3). 
40. Any measures taken under these provisions shall consist of te mporary suspension or reduction 
of tariff preferences granted under the Agreement a nd cannot be applied for more than two years.  
During its first year of application, the measure sh all not apply to a quantit y equal to that imported 
during the first 12 months prior to the period for wh ich serious injury was determined plus 10% of 
that quantity.
5  During the following year, the measure will not be applied to a quantity equal to that 
exempted during the first year plus 10% of that quantity.  If these quantities cannot be determined, the 
parties must consult to reach a satisfactory solution.   A safeguard measure may not be applied again to 
imports subject to preferential treatment unless the period of non-application for the same product is 
at least one year or the duration of the earlier preferential safeguard measure, whichever is greater.6 
41. The investigation, which is expected to take in to account factors such as:  the amount and rate 
of increase in imports of the product;  in absolute  and relative terms;  their share of the domestic 
market;  their price;  the impact on domestic indus try of like or directly competitive products;  and 
other factors that may be causing injury to domestic industry, may be initiated at the request of domestic producers in the importing party of like or directly competitive products.  The investigation, 
from the date that the decision to initiate the inves tigation is announced to the date of publication of 
the decision is not to exceed one year. 
42. Transparency considerations require that th e importing party immediately notify the other 
party upon initiating an investiga tion, including the reasons for the initiation;  making a finding of 
serious injury or threat thereof caused by in creased imports;  and taking a decision to apply a 
                                                     
 
5 The period of determination of serious injury would be 12 months from the date of initiation of the 
investigation (Art. 4 of Annex D). 
6 The measure may not be applies to imports which have been cleared by the customs authorities of the 
importing party prior to the date of entry into force of the measure (Art.7).  WT/COMTD/RTA/4/1 
 Page 15 
 
 
  safeguard.  Any public notice issued of a decision to apply a preferential safeguard measure must be 
notified to the other party within seven days of the notice being published along with the public 
notice.  The information that must be included in  the public notice are also listed in the Annex and 
include details of the products subject to the m easure;  information and evidence leading to the 
decision such as increased preferential imports, th e situation of the domestic industry and serious 
injury caused or threatened;  as we ll as a description of the measure adopted and its date of entry into 
force and duration (Article 16).  Adequate opportunity  for consultations prior to the application of a 
preferential safeguard must be provided to the ex porting party as far in ad vance of taking such a 
measure as practicable and in no case less than 30 days.7 [footnote on details of notification etc.].  The 
notified party may request consultati ons or additional information at any stage of the investigation. 
43. The competent authorities for conducting inv estigations on safeguards are the National 
Commission in Charge of the Investigation of the Existence of Price Distortions in Imported Goods (Comisión Nacional Encargada de Investigar la Existe ncia de Distorsiones en el Precio de las 
Mercaderías Importadas ), or its successor, for Chile.  It is not clear who the authority is for India.  
(c) Special safeguards 
44. There are no specific provisions on special safeguards in the Agreement.  
3. Anti-dumping and countervailing measures 
45. Other than the parties maintaining their rights and obligations under Article VI of 
GATT 1994, the Agreement on the Implementation of  Article VI of the GATT and the Agreement on 
Subsidies and Countervailing Measures, there are no specific provisions on anti-dumping and countervailing measures under the Agreement (Artic le XVI).  Moreover, antidumping actions taken 
under Article VI of the GATT 1994 and the Agr eement on Antidumping or countervail measures 
taken under Article VI of the GATT and the Ag reement on Subsidies and Countervailing Measures 
are not subject to the Agreement's dispute settlement procedures (under Article XVIII).  
4. Subsidies and State-aid 
46. The only reference to subsidies in the Agreemen t relates to agricultural export subsidies.  
Under Article IX the parties state their share l ong term objective of establishing a fair and market 
oriented agriculture trading system under the aegis of the WTO.  They agree to work towards the 
conclusion of the WTO negotiations on agriculture, to achieve "by a credible date the elimination of 
export subsidies, substantial re ductions in all forms of trade distorting domestic support and 
substantial improvements in market access with operationally effective sp ecial and differential 
treatment for developing countries which is integr al to all aspects of the negotiations and their 
outcome consistent with the WTO Doha Ministerial Declaration and the Decision on the work 
programme adopted by the WTO's General Council on 1 August 2004.
8 
                                                      
7 The notification should include:  evidence of the existence of serious injury to the domestic industry 
caused by the increased imports;  the complete descripti on of the products subjected to the measures, including 
its tariff classification under the HS;  description of the measure proposed;  the date of entry into force of the 
measure and its duration;  the period for consultations;  and the criteria employed or an objective information 
proving that the conditions established in this Annex for the application of a measure have been met (Article 15). 
8 WTO document, WT/L/579, 2 August 2004. WT/COMTD/RTA/4/1 
Page 16  
 
  47. There is no reference in the Agreement to state aid per se .  Article VI of the Agreement 
permits the establishment or maintenance of state trading enterprises by both Parties as understood in 
Article XVII of the GATT 1994.  However, each Part y shall ensure that such  enterprises act in a 
manner that is not inconsistent with the obliga tions of the Parties under the Agreement and accord 
non-discriminatory treatment in the import from and export to the other Party. 
5. Customs-related procedures 
(a) Customs valuation 
48. The parties maintain their rights and obligati ons under Article VII of the GATT 1994 and the 
WTO Agreement on the Implementation of Article VII of the GATT 1994. 
(b) Customs cooperation 
49. The parties agree to establish a Working Group on Customs to negotiate within six months of 
the date of entry into force of the Agreement, a mechanism or protocol for customs cooperation to 
facilitate cooperation in customs matters includi ng compliance.  According to Chile, no such 
mechanism or protocol has been established yet.  The Working Group shall meet as often as required 
and will report to the Joint Administration Committee. 
6. Other provisions 
50. There are no provisions on intellectual prope rty rights, government procurement or 
competition in the Agreement. 
D. S
ECTOR -SPECIFIC PROVISIONS OF THE AGREEMENT  
51. There are no sector-specific provisions in the Agreement. 
E. GENERAL PROVISIONS OF THE AGREEMENT  
1. Transparency 
52. Although there is no separate Article on transparen cy, various articles deal with transparency 
issues, including the Annex on Dispute settlement a nd other mechanisms for consultations (such as 
for investigations on safeguards and rules of orig in) as well as provisions on information sharing 
between the parties under the Articles on TBT and SPS. 
2. Current payments and capital movements 
53. There are no provisions on current payments and capital movements in the Agreement. 
3. Exceptions 
54. Nothing in the Agreement shall prevent any party from adopting measures according to 
Articles XX and XXI of the GATT 1994. 
4. Accession and termination 
55. There are no provisions for accession by third par ties to the Agreement.  The Agreement can 
be terminated by either Party by giving six months notice to the other of its intention to terminate the 
Agreement (Article XXII).  WT/COMTD/RTA/4/1 
 Page 17 
 
 
  5. Institutional framework 
56. The Agreement establishes a Joint Administrati on Committee at the Secretary or equivalent 
level to review progress made in the implementation of  the Agreement and to ensure that benefits of 
trade from the Agreement accrue to the parties equita bly.  The Committee is to meet at least once a 
year.  It shall accord adequate opportunities for cons ultation on any issues raised by either party on 
any matter affecting the implementation of the Agre ement.  It shall adopt appropriate measures for 
settling any matter arising from such representations by either party within six months of their being 
made;  each party must implement the measu res immediately.  The Committee may set up 
sub-committees and/or working groups as needed.  According to [the Parties] no sub-committees 
and/or working groups have been established by  the Joint Administration Committee since the 
Agreement entered into force. 
6. Dispute settlement 
57. Disputes on any matter in connection with the in terpretation, application or non-compliance 
with the provisions of the Agreement may be subjec t to the procedures laid out in Annex E to the 
Agreement.  Any matters covered by the Agreemen t and also regulated in the WTO Agreements, may 
be settled either according to the procedures laid out  in the Agreement or under the Understanding on 
Rules and Procedures Governing the Settlement of Di sputes of the WTO.  Once a procedure has been 
initiated under the Agreement or under the DSU, the foru m selected shall be used to the exclusion of 
the other (exclusive forum clause), although this prov ision may be reviewed by the Committee within 
five years of implementation of the Agreement. 
58. A request for consultations must be made to  the other Party in writing, identifying the 
measures, the reasons for the request as well as a summary of the legal basis of the dispute.  The 
request as well as subsequent consultations are to  be conducted by the Ge neral Director, General 
Directorate for International Economic Affairs, fo r Chile and by the Secretary, Department of 
Commerce, for India, or their representatives.  The response to the request for consultations must take 
place within 10 days after the date of its receipt .  The consultations themselves may last no longer 
than 30 days from the receipt of the request unless extended for a mutually agreed period.  
Consultations on matters regardi ng perishable agricultural goods shall last no longer than 20 days 
form the date of receipt of the request. WT/COMTD/RTA/4/1 
Page 18  
 
  Chart II.5 – India-Chile Disputes 
 
 
7. Relationship with other agreements concluded by the Parties 
59. Table II.6 lists all the other regional trade ag reements that are in force (notified and 
non-notified) to which the Parties are a party.  
 
 
 
 60 days from referral to 
PanelConsultations   
(Chapter II) 
Written request for meeting of the 
Committee (Chapter III) 
Request for Arbitral Panel   
(Chapter IV – Art. 9) 
Final Report (publicly 
available after 15 days) 
(Chapter IV - Art. 14) Recommendations within  
30 days of first meeting  
(20 days for perishable agricultural goods)Max 30 days for meeting of the 
Committee unless extended  
(20 days for perishable agricultural goods)
If no settlement 
Initial Report (Chapter IV - Art. 13) 90 days Negotiations for extension of deadline if 
necessary 
Arbitral Panel if disagreement  
on compliance with in reasonable  
period of time 30 days before deadli ne for implementation 
Report to Parties 
Non-Implementation 
15 days after request for 
negotiations 
30 days 30 days (20 days for perishable 
agricultural goods) 
Compensation Suspension of benefits 
Original Arbitral  Panel 
reconvenes 
60 days from 
request for Panel 
Determination by the 
Tribunal 
- Formal + binding 
- Publicly available  WT/COMTD/RTA/4/1 
 Page 19 
 
 
  Table II.6 
Chile and India:  Participation in other RTAs (not ified and non-notified in force), as of January 2010  
GATT/WTO Notification 
Partner / Agreement Date of 
entry  
into force Type of 
agreement Year WTO Provision 
CHILE 
Australia 06.03.09 Goods & Services 2009 GATT Art. XXIV & GATS Art. V 
Japan 03.09.07 Goods & Services 2007 GATT Art. XXIV & GATS Art. V 
China 01.10.06 Goods 2007 GATT Art. XXIV 
Brunei, New Zealand, Singapore 
(Trans-Pacific SEP) 28.05.06a Goods & Services 2007 GATT Art. XXIV & GATS Art. V 
European Communities 01.03.05 Services 2005 GATS Art. V 
EFTA 01.12.04 Goods & Services 2004 GATT Art. XXIV & GATS Art. V 
Republic of Korea 01.04.04 Goods & Services 2004 GATT Art. XXIV & GATS Art. V 
United States 01.01.04 Goods & Services 2003 GATT Art. XXIV & GATS Art. V 
European Communities 01.02.03 Goods 2004 GATT Art. XXIV 
El Salvador (Central America) 01.06.02 Goods & Services 2004 GATT Art. XXIV & GATS Art. V 
Costa Rica (Central America) 15.02.02 Goods & Services 2002 GATT Art. XXIV & GATS Art. V 
Mexico 01.08.99 Goods & Services 2001 GATT Art. XXIV & GATS Art. V 
Canada 05.07.97 Goods & Services 1997 GATT Art. XXIV & GATS Art. V 
GSTP 19.04.89 Goods & Services 1989 GATT Art. XXIV & GATS Art. V 
LAIA 18.03.81 Goods & Services 1982 GATT Art. XXIV & GATS Art. V 
PTN 11.02.73 Goods & Services 1971 GATT Art. XXIV & GATS Art. V 
Colombia 08.05.09 Goods & Services Not notified 
Peru 01.03.09 Goods & Services Not notified 
Honduras (Central America) 28.08.08 Goods & Services Not notified 
Cuba 28.08.08 Goods Not notified 
MERCOSUR 01.10.96b Goods Not notified 
Ecuador 20.12.94 Goods Not notified 
Bolivia 07.07.93 Goods Not notified 
Venezuela 02.04.93 Goods Not notified 
INDIA 
Bhutan 29.07.06 Goods 2008 Enabling Clause 
SAFTA 01.01.06 Goods 2005 Enabling Clause 
Singapore 01.08.05 Goods & Services 2007 GATT Art. XXIV and GATS V 
Sri Lanka 01.03.00 Goods 2002 Enabling Clause 
SAPTA 07.12.95 Goods 1997 Enabling Clause 
GSTP 19.04.89 Goods 1989 Enabling Clause 
APTA (Bangkok Agreement) 17.06.76 Goods 1976 Enabling Clause 
Republic of Korea 01.01.10c Goods Not notified 
ASEAN 01.01.10d Goods Not notified 
MERCOSUR 01.06.09 Goods Not notified 
Afghanistan 06.03.03 Goods Not notified 
Nepal 06.03.02e Goods Not notified 
EFTA: European Free Trade Association.  LAIA : Latin American Integration Association. 
GSTP: Global System of Trade Preferences.  PTN: Protocol  relating to Trade Negotiati ons among developing countries. 
SAFTA: South Asian Free Trade Agreement.  SAPTA: Sout h Asian Preferential Trade Agreement.  SAFTA and SAPTA 
 members are:  Bangladesh, Bhutan, India, Maldives, Nepal, Pakistan, 
 Sri Lanka. WT/COMTD/RTA/4/1 
Page 20  
 
  a The Trans-Pacific SEP Agreement entered into force on 28 May 2006 for New Zealand and Singa pore;  12 July 2006 for Brunei 
Darussalam;  and 8 November 2006 for Chile. 
b Duty elimination for at least three-quarters of  tariff lines by January 2004 and all the lines by 2014. 
c Agreement signed on 7 August 2009.  Entry into fo rce 1 January 2010 (Notification 152/2009 - Customs).  
d Not yet in force for all member states of the ASEAN.  Dates of en try into force differ.  For India, entered into force 
1 January 2010 (Notification 152/2009 - Customs). 
e Date of renewal of agreement. 
 
Source:  WTO Secretariat.  
 
8. Other 
60. The Agreement may be modified or amended thro ugh mutual agreement between the Parties.  
Any proposals of this kind should be submitted to the Joint Administration Committee and if 
accepted, are to be approved in accordance with the applicable lega l procedures of each Party.  The 
modifications will become effective when confirme d through an exchange of diplomatic notes and 
shall constitute an integral part of the Agreement.  Notwithstanding this, in emergency situations, the 
Parties are not required to submit the proposed ch anges to the Joint Administration Committee and if 
agreed, can be given effect through an exchange of  diplomatic notes between the Parties (Article XX). 
  WT/COMTD/RTA/4/1 
 Page 21 
 
 
  ANNEX I 
 
 1. A comparison between the scheduled reduction of  tariffs applied to the Parties' mutual 
imports and their MFN tariffs is provided in Ta bles AI.1 for Chile and AI.2 for India.  The 
comparison is provided by total products, agricu lture and non-agricultural products.  Table AI.1 
shows that before the entry into force of the Agreement, around 0.4% of Chile's tariff was duty free for imports on an MFN basis with the overall average tariff at 6%.  As a result of the Agreement, 
Indian exporters faced an average improvement in ma rket access of 1.7%.  However, if reduced rates 
were also taken into account, the average duties f aced by Indian exporters was 4.6%, an average 
improvement in market access of 23.3%.   
Table AI.1 
Chile: Indicators of MFN tariff rates and preferential rates for imports from India 
ALL PRODUCTS Agricultural products a Non-agricultural products 
Average applied 
tariff Average applied 
tariff Average applied 
tariff Origin of 
goods Year 
Overall 
(%) On 
dutiable 
(%) Share of 
duty-
free 
tariff 
lines 
(%) Overall 
(%) On 
dutiable 
(%) Share of 
duty-
free 
tariff 
lines 
(%) Overall 
(%) On 
dutiable 
(%) Share of 
duty-free 
tariff lines 
(%) 
MFN 2007 6.0 6.0 0.4 6.1 6.1 0.0 6.0 6.0 0.5 
India 2007 5.9 6.0 0.5 6.1 6.1 0.0 5.9 5.9 0.6 
Eliminated tariffs or tariffs with reduced rates 
MFN 2007 6.0 6.0 0.0 6.0 6.0 0.0 6.0 6.0 0.0 
India 2007 4.6 4.7 1.4 4.6 4.6 0.0 4.6 4.7 1.4 
 a WTO Definition. 
Note: Based on the HS 2002 nomenclature. 
 
Source : WTO Secretariat estimates based on data provided by Chile. 
 
2. India's overall applied MFN rate averaged 13%  in 2007 with 2.1% of the tariff being duty 
free.  Its MFN tariff on agricultural products at 38.1%  is significantly higher than the average tariff for 
non-agricultural products which was 9.3% in 2007.  As none of the tariff became duty free as a result 
of the Agreement, there is no change to the shar es of lines under which imports from Chile will enter 
duty free.  However, as a result of preferential duty reductions, the overall average on the tariff lines 
subject to such duty reductions falls to 17% compared to an average MFN rate of 21.1. 
Table AI.2 
India: Indicators of MFN tariff rates a nd preferential rates for imports from Chile 
ALL PRODUCTS Agricultural products a Non-agricultural products 
Average applied 
tariff Average applied 
tariff Average applied 
tariff Origin of 
goods Year 
Overall 
(%) On 
dutiable 
(%) Share of 
duty-free 
tariff 
lines (%) Overall 
(%) On 
dutiable 
(%) Share of 
duty-free 
tariff lines 
(%) Overall 
(%) On 
dutiable 
(%) Share of 
duty-free 
tariff lines 
(%) 
MFN 2007 13.0 13.2 2.1 38.1 39.1 2.5 9.3 9.5 2.1 
Chile 2007 12.9 13.2 2.1 38.0 39.0 2.5 9.3 9.5 2.1 
Tariffs with reduced rates 
MFN 2007 21.1 21.1 0.0 35.2 35.2 0.0 18.5 18.5 0.0 
Chile 2007 17.0 17.0 0.0 29.7 29.7 0.0 14.6 14.6 0.0 
 
a WTO Definition. Note: Based on HS 2007 nomenclature. 
 Excludes data beyond HS Chapter 97. 
 
Source : WTO Secretariat estimates based on data provided by India. 
 
3. Table AI.3 shows market access opportunities in the Chilean market for India's top 25 exports 
covered by 79 tariff lines at the HS 8-digit leve l, whose share during the 2004-06 period was, on 
average, 44.3% of total exports.  None of these 79 tariff lines were subject to tariff elimination under WT/COMTD/RTA/4/1 
Page 22  
 
  the Agreement;  however, duty reductions apply to  tariff lines relating to nine of these products 
accounting for 7.6% of Chile's global exports.  As  a result the average pr eferential tariff for the 
25 products ranges from 5.4% to 5.9% (compared to the MFN rate of 6%). 
Table AI.3 – Chile:  Market access opportunities under the agree ment for India's top 25 exports 
India's top export products in 2004-2006  Access Conditions to Chile's import markets  
HS number and description of the product  Share in 
global 
exports (%)  Average 
2007 MFN 
applied rate 
(%) Average 
Preferential 
rate 
(%) Remain 
dutiable 
620630 Of cotton 0.9 6.0 5.4 1 
230400 Oil-cake and other solid residues, whether or 
not ground or in the form of pellets, resulting 
from the extraction of soya-bean oil. 0.8 6.0 6.0 4 
030613 Shrimps and prawns 0.8 6.0 5.9 9 
630492 Not knitted or crocheted,  of cotton 0.7 6.0 5.4 1 
520100 Cotton, not carded or combed. 0.7 6.0 6.0 1 
870899 Other 0.7 6.0 5.8 7 
620520 Of cotton 0.6 6.0 5.7 2 
080132 Shelled 0.5 6.0 6.0 1 
020230 Boneless 0.5 6.0 6.0 3 
290243 p-Xylene 0.4 6.0 6.0 1 
870322 Of a cylinder capacity exceeding 1,000 cc but 
not exceeding 1,500 cc 0.4 6.0 6.0 6 
710239 Other 10.1 6.0 6.0 1 
271019 Other 8.5 6.0 6.0 13 
711319 Of other precious metal,  whether or not plated 
or clad with precious metal 3.5 6.0 6.0 1 
260111 Non-agglomerated 3.3 6.0 6.0 4 
271011 Light oils and preparations 3.2 6.0 6.0 7 
294200 Other organic compounds. 1.5 6.0 6.0 1 
100630 Semi-milled or wholly milled rice, whether or 
not polished or glazed 1.4 6.0 6.0 3 
300490 Other 1.4 6.0 5.4 2 
721049 Other 1.1 6.0 4.8 1 
610910 Of cotton 1.0 6.0 5.7 4 
740311 Cathodes and sections of cathodes 0.9 6.0 6.0 1 
630790 Other 0.4 6.0 5.4 1 
740811 Of which the maximum cross-sectional 
dimension exceeds 6 mm 0.4 6.0 6.0 2 
380810 Insecticides 0.4 6.0 6.0 2 
Total of above 44.3  79 
 
Source:   WTO estimates based on data provided by Chile and UNSD, Comtrade database. 
 
4. Table AI.4 shows market access opportunities in the Indian market for Chile's top 25 exports 
which are covered by 50 tariff lines at the HS 8-digit level.  Reduced preferential rates apply to some 
22.1% of India's global exports (applying to HS 260300, 470321, 230120, 470329, 020329, 030319, 280120, and 030321).  
Table AI.4 – India: Market access opportunities  under the agreement for Chile's top 25 exports 
Access Conditions to India's import markets  Chile's top export products in 2004-2006  MFN (2007)  
HS number and description of the product  Share in 
global 
exports (%)  Average 
MFN applied 
rate 
(%) Average Preferential rate 
(%) Remain 
Dutiable 
 
740311 -- Cathodes and sections  of cathodes 26.9 5.0 5.0 1 
260300 Copper ores and concentrates. 17.9 2.0 1.8 1 
740200 Unrefined copper;  copper anodes for 
electrolytic refining. 3.9 5.0 5.0 2 
261310 - Roasted 3.1 2.0 2.0 1 
261390 - Other 1.9 2.0 2.0 1 
220421 -- In containers holding 2 l or less 1.8 100.0 100.0 3 
470321 -- Coniferous 1.8 5.0 4.0 1 
440710 - Coniferous 1.6 10.0 10.0 3 
Table AI.4 (Cont'd)   WT/COMTD/RTA/4/1 
 Page 23 
 
 
  Access Conditions to India's import markets  Chile's top export products in 2004-2006  MFN (2007)  
HS number and description of the product  Share in 
global 
exports (%)  Average 
MFN applied 
rate 
(%) Average Preferential rate 
(%) Remain 
Dutiable 
 
080610 - Fresh 1.6 30.0 30.0 1 
290511 -- Methanol (methyl alcohol) 1.5 7.5 7.5 1 
740319 -- Other 1.5 5.0 5.0 1 
271011 -- Light oils and preparations 1.1 10.0 10.0 6 
230120 - Flours, meals and pellets, of fish or of 
crustaceans, molluscs or other aquatic 
invertebrates 1.1 5.0 4.7 3 
710812 -- Other unwrought forms 0.9 10.0 10.0 1 
720270 - Ferro-molybdenum 0.9 5.0 5.0 1 
080810 - Apples 0.8 50.0 50.0 1 
470329 -- Non-coniferous 0.8 5.0 4.0 1 
440910 - Coniferous: 0.7 10.0 10.0 3 
271019 -- Other 0.7 9.7 9.7 9 
020329 -- Other 0.6 30.0 25.5 1 
740811 -- Of which the maximum cross-sectional 
dimension exceeds 6 mm 0.6 5.0 5.0 2 
030319 -- Other 0.6 30.0 24.0 1 
280120 - Iodine 0.6 5.0 4.0 1 
030321 -- Trout (Salmo trutta, Oncorhynchus mykiss, 
Oncorhynchus clar ki, Oncorhynchus 
aguabonita, Oncorhynchus gilae, 
Oncorhynchus apache and Oncorhynchus chrysogaster) 0.5 30.0 24.0 1 
282570 - Molybdenum oxides and hydroxides 0.5 7.5 7.5 3 
Total of above 73.8  50 
 
Source : WTO estimates based on da ta provided by India and UNSD, Comtrade database. 
 
5. The average of dutiable preferential rates, compared to their corresponding MFN rates is 
shown for Chile and India in tables AI.5 and AI.6 resp ectively.  In general, for both Parties the margin 
of preference is relatively small.  For Chile, for the great majority of Chapters, this amounts to 0.1 of a 
percentage point but greater margins of preference are found, for example in Chapter 42 (articles of 
leather) where the average preferential rate is 5.6% compared to the average MFN rate of 6% or in 
Chapters 13 and 57 which have average preferential rates of 5.7% compared to the MFN average of 
6%.  The overall preferential rate, however, is  unchanged from the overall MFN rate of 6%. 
Table AI.5  
Chile: Average of dutiable rates, by HS chapter 
Number of dutiable tariff lines and 
their average rates - (%) HS Chapter Description No. of 
lines MFN Preferential 
01 Live animals 28 6.0 6.0 
02 Meat and edible meat offal 85 7.6 7.6 
03 Fish and crustaceans, molluscs and ot her aquatic invertebrates 369 6.0 6.0 
04 Dairy produce; birds' eggs; natural honey;  edible products of animal origin, not 
elsewhere specified or included 59 6.0 6.0 
05 Products of animal origin not else where specified or included 26 6.0 6.0 
06 Live trees and other plants; bulbs, roots and the like; cut flowers and ornamental 
foliage 27 6.0 6.0 
07 Edible vegetables and certain  roots and tubers 90 6.0 6.0 
08 Edible fruit and nuts; peel of citrus fruits or melons 100 6.0 6.0 
09 Coffee, tea, mate and spices 34 6.0 5.9 
10 Cereals 20 6.0 6.0 
11 Products of the milling industry; malt; starches; inulin; wheat gluten 30 6.0 6.0 
12 Oil seeds and oleaginous fruits; miscella neous grains, seeds and fruit; industrial 
or medicinal plants; straw and fodder 72 6.0 6.0 
13 Lacs; gums, resins and other vege table saps and extracts 14 6.0 5.7 
Table AI.5 (Cont'd)  WT/COMTD/RTA/4/1 
Page 24  
 
  Number of dutiable tariff lines and 
their average rates - (%) HS Chapter Description No. of 
lines MFN Preferential 
14 Vegetable plaiting materials; vegetabl e products not elsewhere specified or 
included 10 6.0 6.0 
15 Animal or vegetable fats and oils and their cleavage products; prepared edible 
fats; animal or vegetable waxes 65 6.0 6.0 
16 Preparations of meat, of fish or of  crustaceans, molluscs or other aquatic 
invertebrates 83 6.0 6.0 
17 Sugars and sugar c onfectionery 29 6.0 6.0 
18 Cocoa and cocoa preparations 20 6.0 6.0 
19 Preparations of cereals, flour, starch or milk; pastrycooks' products 28 6.0 6.0 
20 Preparations of vegetables, fruit, nut s or other parts of plants 93 6.0 6.0 
21 Miscellaneous edible preparations 35 6.0 6.0 
22 Beverages, spirits and vinegar 53 6.0 6.0 
23 Residues and waste from the food industr ies; prepared animal fodder 43 6.0 6.0 
24 Tobacco and manufactured t obacco substitutes 14 6.0 6.0 
25 Salt; sulphur; earths and stone; plastering material, lime and cement 79 6.0 6.0 
26 Ores, slag and ash 47 6.0 6.0 
27 Mineral fuels, mineral oils and pr oducts of their distillation; bituminous 
substances; mineral waxes 65 6.0 6.0 
28 Inorganic chemicals: organic or inor ganic compounds of precious metals, of 
rare-earth metals, of radioactive elements or of isotopes 221 6.0 6.0 
29 Organic chemicals 517 6.0 5.8 
30 Pharmaceutical products 56 6.0 5.8 
31 Fertilizers 35 6.0 6.0 
32 Tanning or dyeing extracts; tannins and their derivatives; dyes, pigments and 
others colouring matter; paints and varn ishes; putty and other mastics; inks 80 6.0 5.9 
33 Essential oils and resinoids;  perfumery, cosmetic or toilet preparations 45 6.0 5.9 
34 Soap, organic surface-active agents , washing preparations, lubricant 
preparations, artificial waxes, prep ared waxes, polishing or scouring 
preparations, candles and similar articl es, modelling pastes, dental waxes' and 
dental preparations with a basis of 40 6.0 6.0 
35 Albuminoidal substances; modified starches; glues; enzymes 24 6.0 6.0 
36 Explosives; pyrotechnic products; ma tches;  pyrophoric alloys; certain 
combustible preparations 16 6.0 6.0 
37 Photographic or cinema tographic goods 44 6.0 6.0 
38 Miscellaneous chemical products 112 6.0 6.0 
39 Plastics and articles thereof 187 6.0 6.0 
40 Rubber and articles thereof 119 6.0 5.9 
41 Raw hides and skins (other than  furskins) and leather 41 6.0 5.9 
42 Articles of leather; saddlery and harn ess; travel goods, handbags and similar 
containers; articles of animal gut (other than silk-worm gut) 27 6.0 5.6 
43 Furskins and artificial fur; manufactures thereof 18 6.0 6.0 
44 Wood and articles of wood; wood charcoal 129 6.0 6.0 
45 Cork and articles of cork 8 6.0 6.0 
46 Manufactures of straw, of esparto or of  other plaiting materi als; basketware and 
wickerwork 5 6.0 6.0 
47 Pulp of wood or of other fibrous cellulo sic material; waste and scrap of paper or 
paperboard 24 6.0 6.0 
48 Paper and paperboard; article s of paper pulp, of paper or  of paperboard 174 6.0 6.0 
49 Printed books, newspapers, pictures and other products of the printing industry; 
manuscripts, typescripts and plans 33 6.0 6.0 
50 Silk 10 6.0 5.8 
51 Wool, fine or coarse animal hair; hor sehair yarn and woven fabric 54 6.0 6.0 
52 Cotton 132 6.0 5.9 
53 Other vegetable textile fibres; paper yarn  and woven fabrics of  paperyarn 39 6.0 5.9 
54 Man-made filaments 98 6.0 6.0 
55 Man-made staple fibres 133 6.0 5.9 
56 Wadding, felt and non-wovens;  special yarn s; twine, cordage, ropes and cables 
and articles thereof 47 6.0 6.0 
57 Carpets and other textile floor coverings  30 6.0 5.7 
58 Special woven fabrics; tufted textile fabrics; lace; tapestries; trimmings; 
embroidery 42 6.0 6.0 
59 Impregnated, coated, covere d or laminated textile fabrics; textile articles of a 
kind suitable for industrial use 40 6.0 6.0 
60 Knitted or crochete d fabrics 50 6.0 6.0 
61 Articles of apparel and clothing accesso ries, knitted or crocheted 193 6.0 6.0 
62 Articles of apparel and clothing accesso ries, not knitted or crochet 211 6.0 5.9 
63 Other made up textile articles; sets; worn clot hing and worn textile articles; rags 92 6.0 5.9 
Table AI.5 (Cont'd)   WT/COMTD/RTA/4/1 
 Page 25 
 
 
  Number of dutiable tariff lines and 
their average rates - (%) HS Chapter Description No. of 
lines MFN Preferential 
64 Footwear, gaiters and the like; parts of such articles 86 6.0 5.8 
65 Headgear and parts thereof 11 6.0 6.0 
66 Umbrellas, sun umbrellas, walking-stic ks, seat-sticks, whips, riding-crops and 
parts thereof 9 6.0 6.0 
67 Prepared feathers and down and articles ma de of feathers or of down; artificial 
flowers; articles of human hair 9 6.0 6.0 
68 Articles of stone, plaster, cement, asbest os, mica or similar materials 57 6.0 6.0 
69 Ceramic products 45 6.0 5.9 
70 Glass and glassware 78 6.0 6.0 
71 Natural or cultured pearls, precious or  semi-precious stones, precious metals, 
metals clad with precious metal, and ar ticles thereof; imitation jewellery; coin 59 6.0 5.9 
72 Iron and steel 178 6.0 5.9 
73 Articles of iron or steel 145 6.0 6.0 
74 Copper and articles thereof 73 6.0 6.0 
75 Nickel and articles thereof 19 6.0 6.0 
76 Aluminium and articles thereof 41 6.0 5.9 
78 Lead and articles thereof 10 6.0 6.0 
79 Zinc and articles thereof 10 6.0 6.0 
80 Tin and articles thereof 8 6.0 6.0 
81 Other base metals; cermets; articles thereof 53 6.0 6.0 
82 Tools, implements, cutlery, spoons and fo rks, of base metal; parts thereof of 
base metal 78 6.0 5.9 
83 Miscellaneous articles of base metal 42 6.0 5.9 
84 Nuclear reactors, boilers, machinery and mech anical appliances; parts thereof 744 6.0 6.0 
85 Electrical machinery and equipment and parts thereof; sound recorders and 
reproducers, television image and sound recorders and reproducers, and parts 
and accessories of such articles 520 6.0 6.0 
86 Railway or tramway locomotives, rolli ng-stock and parts thereof; railway or 
tramway track fixtures a nd fittings and parts thereo f; mechanical (including 
electro-mechanical) traffic signalling equipment of all kinds 31 6.0 6.0 
87 Vehicles other than railway or tramway rolling-stock, and parts and accessories 
thereof 246 6.0 6.0 
88 Aircraft, spacecraft, and parts thereof 11 6.0 6.0 
89 Ships, boats and floating structures 26 6.0 6.0 
90 Optical, photographic, cinematographi c, measuring, checking, precision, 
medical or surgical instruments and apparatus; parts and accessories thereof 211 6.0 6.0 
91 Clocks and watches and parts thereof 53 6.0 6.0 
92 Musical instruments; parts and accessories of such articles 23 6.0 5.9 
93 Arms and ammunition; parts and accessories thereof 23 6.0 6.0 
94 Furniture; bedding, mattresses, mattress supports, cushions and similar stuffed 
furnishings; lamps and lighting fittings, not elsewhere specified or included; 
illuminated signs, illuminated name-plates and the like; prefabricated buildings 92 6.0 5.9 
95 Toys, games and sports requisites; parts and accessories thereof 60 6.0 5.9 
96 Miscellaneous manufactured articles 61 6.0 6.0 
97 Works of art, collectors' pieces and antiques 7 6.0 6.0 
Total 7,863 6.0 6.0 
 
Note: Based on HS 2002 nomenclature.  
Source:  WTO estimates based on data provided by Chile. 
 
6. For India, lower average preferential rates are found mainly in agriculture (Chapters 2, 3, 7 
and 16);  average preferential rates are also lowe r for raw hides and skins (HS 41), leather (HS 43) 
and wood products (HS 44).  The overall average pr eferential tariff is not significantly lower than the 
average MFN rate (13.18% compared to 13.25%).  
 
  
 
   WT/COMTD/RTA/4/1 
Page 26  
 
  Table AI.6 
India:  Average of dutiable rates, by HS chapter 
Number of dutiable tariff lines and 
their average rates - (%) HS Chapter Description No. of 
lines MFN Preferential 
01 Live animals 34 30.00 30.00 
02 Meat and edible meat offal 61 32.30 31.09 
03 Fish and crustaceans, molluscs and ot her aquatic invert ebrates 142 30.00 27.63 
04 Dairy produce; birds' eggs; natura l honey; edible products of animal 
origin, not elsewhere specified or included 43 34.65 34.65 
05 Products of animal origin, not else where specified or included 69 29.71 29.71 
06 Live trees and other plants; bulbs, roots and the like; cut flowers and 
ornamental foliage 24 21.88 21.88 
07 Edible vegetables and certain  roots and tubers 81 30.68 30.60 
08 Edible fruit and nuts; peel of citrus fruit or melons 87 32.18 32.18 
09 Coffee, tea, mate and spices 135 62.15 62.15 
10 Cereals 20 59.00 59.00 
11 Products of the milling industry; malt; starches; inulin; wheat gluten 35 30.00 30.00 
12 Oil seeds and oleaginous fruits; mi scellaneous grains, seeds and fruit; 
industrial or medicinal plants; straw and fodder 98 21.17 21.17 
13 Lac; gums, resins and other vege table saps and extracts 49 25.82 25.82 
14 Vegetable plaiting materials; vegetable products not elsewhere 
specified or included 14 30.00 30.00 
15 Animal or vegetable fats and oils and their cleavage products; prepared 
edible fats; animal or vegetable waxes 119 63.76 63.76 
16 Preparations of meat, of fish or  of crustaceans, molluscs or other 
aquatic invertebrates 34 34.12 30.15 
17 Sugars and sugar c onfectionery 38 33.42 33.42 
18 Cocoa and cocoa preparations 15 30.00 30.00 
19 Preparations of cereals, flour, starch or milk; pastrycooks' products 33 31.21 31.21 
20 Preparations of vegetables, fruit, nut s or other parts of plants 70 30.21 30.13 
21 Miscellaneous edible preparations 42 64.29 64.29 
22 Beverages, spirits and vinegar 64 112.15 112.15 
23 Residues and waste from the food industr ies; prepared animal fodder 66 18.71 18.65 
24 Tobacco and manufactured t obacco substitutes 44 30.00 30.00 
25 Salt; sulphur; earths and stone; plastering materials, lime and cement 169 6.07 6.06 
26 Ores, slag and ash 65 2.89 2.89 
27 Mineral fuels, mineral oils and products of their distillation; 
bituminous substances; mineral waxes 73 10.10 10.10 
28 Inorganic chemicals; organic or  inorganic compounds of precious 
metals, of rare- earth metals, of ra dioactive elements or of isotopes 327 7.25 7.22 
29 Organic chemicals 807 7.20 7.19 
30 Pharmaceutical products 211 10.00 10.00 
31 Fertilisers 28 6.70 6.59 
32 Tanning or dyeing extracts; tannins and their derivatives; dyes, 
pigments and other colouring matter;  paints and varnishes; putty and 
other mastics; inks 337 7.94 7.94 
33 Essential oils and resinoids; perfumery, cosmetic or toilet preparations 124 17.26 17.26 
34 Soap, organic surface- active agents , washing preparations, lubricating 
preparations, artificial waxes, prep ared waxes, polishing or scouring 
preparations, candles and similar articles, modelling pastes, "dental 
waxes" and dental prep arations with a basis 59 9.83 9.42 
35 Albuminoidal substances; modified starches; glues; enzymes 38 14.08 14.08 
36 Explosives; pyrotechnic products; ma tches; pyrophoric alloys; certain 
combustible preparations 25 10.00 10.00 
37 Photographic or cinema tographic goods 106 9.95 9.95 
38 Miscellaneous chemical products 175 9.11 9.11 
39 Plastics and articles thereof 411 9.05 9.05 
40 Rubber and articles thereof 174 11.02 11.02 
41 Raw hides and skins (other than  furskins) and leather 30 10.00 9.17 
42 Articles of leather; saddlery and harness; travel goods, handbags and 
similar containers; articles of animal  gut (other than silk- worm gut) 62 10.00 10.00 
43 Furskins and artificial fur; manufactures thereof 21 10.48 10.00 
44 Wood and articles of wood; wood charcoal 174 8.99 8.58 
45 Cork and articles of cork 10 10.00 10.00 
46 Manufactures of straw, of espart o or of other plaiting materials; 
basketware and wickerwork 13 10.00 10.00 
47 Pulp of wood or of other fibrous cellulosic material; recovered (waste 
and scrap) paper and paperboard 21 5.95 5.86 
Table AI.6 (Cont'd)   WT/COMTD/RTA/4/1 
 Page 27 
 
 
  Number of dutiable tariff lines and 
their average rates - (%) HS Chapter Description No. of 
lines MFN Preferential 
48 Paper and paperboard; article s of paper pulp, of paper or  of paperboard 219 10.00 9.95 
49 Printed books, newspapers, pictures and other products of the printing 
industry; manuscripts, typescripts and plans 24 10.00 10.00 
50 Silk 29 13.62 13.62 
51 Wool, fine or coarse animal hair; hor sehair yarn and woven fabric 105 9.86 9.77 
52 Cotton 426 10.08 10.08 
53 Other vegetable textile fibres; pape r yarn and woven fabrics of paper 
yarn 64 10.31 10.31 
54 Man- made filaments 243 10.00 10.00 
55 Man- made staple fibres 200 9.96 9.96 
56 Wadding, felt and nonwovens; special ya rns; twine, cordage, ropes and 
cables and articles thereof 52 10.00 10.00 
57 Carpets and other textile floor coverings  76 10.00 10.00 
58 Special woven fabrics; tufted textile fabrics; lace; tapestries; 
trimmings; embroidery 81 10.00 10.00 
59 Impregnated, coated, covered or laminated textile fabrics; textile 
articles of a kind suitable for industrial use 68 10.00 10.00 
60 Knitted or crochete d fabrics 46 10.00 10.00 
61 Articles of apparel and clothing accesso ries, knitted or cr ocheted 191 10.00 10.00 
62 Articles of apparel and clothing accessori es, not knitted or cr ocheted 206 10.00 10.00 
63 Other made up textile articles; sets; worn clothing and worn textile 
articles; rags 114 9.61 9.61 
64 Footwear, gaiters and the like; parts of such articles 69 10.00 10.00 
65 Headgear and parts thereof 14 10.00 10.00 
66 Umbrellas, sun umbrellas, walking- sticks, seat- sticks, whips, riding- 
crops and parts thereof 7 10.00 10.00 
67 Prepared feathers and down and artic les made of feathers or of down; 
artificial flowers; articles of human hair 15 10.00 10.00 
68 Articles of stone, plaster, cement, asbest os, mica or similar materials 90 10.00 10.00 
69 Ceramic products 68 8.09 8.09 
70 Glass and glassware 105 9.95 9.95 
71 Natural or cultured pearls, precious or semi- precious stones, precious 
metals, metals clad with precious metal, and articles thereof; imitation 
jewellery; coin 91 10.00 10.00 
72 Iron and steel 509 5.01 5.01 
73 Articles of iron or steel 260 10.00 10.00 
74 Copper and articles thereof 95 6.61 6.61 
75 Nickel and articles thereof 27 5.00 5.00 
76 Aluminium and articles thereof 96 7.32 7.32 
78 Lead and articles thereof 17 6.18 6.18 
79 Zinc and articles thereof 21 5.48 5.48 
80 Tin and articles thereof 11 5.91 5.91 
81 Other base metals; cermets; articles thereof 69 5.72 5.72 
82 Tools, implements, cutlery, spoons and forks, of base metal; parts 
thereof of base metal 97 10.00 10.00 
83 Miscellaneous articles of base metal 62 10.00 10.00 
84 Nuclear reactors, boilers, machiner y and mechanical appliances; parts 
thereof 1,008 7.59 7.59 
85 Electrical machinery and equipment and parts thereof; sound recorders 
and reproducers, television image and sound recorders and 
reproducers, and parts and acce ssories of such articles 501 8.49 8.49 
86 Railway or tramway locomotives, ro lling- stock and parts thereof; 
railway or tramway track fixtures  and fittings and parts thereof; 
mechanical (including electro- mechanical) traffic signalling 
equipment of all kinds 41 10.00 10.00 
87 Vehicles other than railway or tramway rolling- stock,and parts and 
accessories thereof 176 40.17 40.17 
88 Aircraft, spacecraft, and parts thereof 20 7.90 7.90 
89 Ships, boats and floating structures 23 9.78 9.70 
90 Optical, photographic, cinematogr aphic, measuring, checking, 
precision, medical or surgical inst ruments and apparatus; parts and 
accessories thereof 243 8.28 8.28 
91 Clocks and watches and parts thereof 66 10.00 10.00 
92 Musical instruments; parts and accessories of such articles 19 10.00 10.00 
93 Arms and ammunition; parts and accessories thereof 20 10.00 10.00 
Table AI.6 (Cont'd)  WT/COMTD/RTA/4/1 
Page 28  
 
  Number of dutiable tariff lines and 
their average rates - (%) HS Chapter Description No. of 
lines MFN Preferential 
94 Furniture; bedding, mattresses, mattr ess supports, cushions and similar 
stuffed furnishings; lamps and lighti ng fittings, not elsewhere specified 
or included; illuminated signs, illuminated name- plates and the like; 
prefabricated buildings 69 10.00 10.00 
95 Toys, games and sports requisites; parts and accessories thereof 55 10.00 10.00 
96 Miscellaneous manufactured articles 90 10.00 10.00 
97 Works of art, collectors' pieces and antiques 14 10.00 10.00 
Total 11,089 13.25 13.18 
 
Note: Based on HS 2007 nomenclature. 
 
Source:  WTO estimates based on data provided by India. 
  WT/COMTD/RTA/4/1 
 Page 29 
 
 
  ANNEX II 
 
 
Table AII.1 
India:  Effective export duty rates as at May 2009 
Product Rate 
Iron ores (lumps) 5% 
Chromium ores and concentrates, all sorts Rs 3000 per tonne 
Hides, skins and leathers, tanned a nd untanned, all sorts, but not in cluding manufactures of leather  
- E.I. tanned leather 15% 
- Snake skin 10% 
- Raw fur lamb skins 10% 
- Luggage leather-case hide or side/suite  case/handbag luggage/cash bag leather 25% 
- Industrial leathers including for cycle sa ddle and hydraulic/packing/belting/washers 15% 
- Industrial harness leather 25% 
- Picking band leathers 15% 
- Strap combing leathers 15% 
- Miscellaneous leathers, namely transistor case/camera case leathers 25% 
Ferrous waste and scrap, remelting scrap ingots of iron and steel 15% 
Source:  Information provided by India. 
__________