Lok Sabha Question No. 863 (UNSTARRED), answered on 2016-11-21
Subject: Review of Indo-Korea CEPA
Ministry: COMMERCE AND INDUSTRY
Asked by: KAUSHALENDRA KUMAR

## GOVERNMENT OF INDIA MINISTRY OF COMMERCE & INDUSTRY (DEPARTMENT OF COMMERCE)

## LOK SABHA UNSTARRED QUESTION NO. 863(H) TO BE ANSWERED ON 21 st  NOVEMBER, 2016

## REVIEW OF INDO-KOREA CEPA

## 863(H). SHRI KAUSHALENDRA KUMAR:

Will the Minister of COMMERCE & INDUSTRY ( वाͨणÏय एवं उɮयोग मंğी ) be pleased to state:

- (a) whether Alu-Alu Foils manufacturers association has requested the Government to review the  Indo-Korea  Comprehensive Economic  Partnership Agreement (CEPA) which is effective since January, 2010;
- (b) if so, the details thereof and the reasons therefor along with the action taken by the Government on this request;
- (c) whether  the  Aluminium  Association  of  India  has  also  strongly  supported  this demand  of  Indian  Alu-Alu  Foils  (Cold  Form  Foils)  manufacturers  to  save  the domestic Industry and if so, the details thereof;
- (d) whether it is a fact that when the agreement was applicable, no one was producing Alu-Alu Foils in India, but new domestic Industry is having sufficient capacity to manufacture the total demands of the country; and
- (e) if  so,  the  details  thereof  and  the  reasons  therefor  along  with  the  reaction  of  the Government thereto?

## ANSWER

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## THE MINISTER OF STATE IN THE MINISTRY OF COMMERCE AND INDUSTRY (INDEPENDENT CHARGE) (SMT. NIRMALA SITHARAMAN)

(a)  to  (c):  Cold  Form  Foil  (Mfrs.)  Association  had  submitted  a  representation  dated  17 th March 2015 requesting withdrawal  of exemption  granted  to  the import  of Cold Form  Foil (final product) from South Korea under India-Korea CEPA.

Aluminium Association of India vide their letter dated 22 nd May 2015 supported the request of Cold Form Foil (Mfrs.) Association. A request regarding withdrawal of custom duty  exemption  granted  to  South  Korea  on  Alu-AluFoils  (Cold  Form  Foils)  under  IndiaKorea  CEPA  was  also  received  from  Hon'ble  Member  of  Parliament,  ShriKaushalendra Kumar in August 2016.

The issue was examined by the Government. Under the India-Korea CEPA agreement which entered into force w.e.f. 01.01.2010, the customs tariffs on Aluminium foils (under HS 7607)were committed for progressive elimination. The Indian schedule of tariff concessions under  CEPA had been finalised in 2009 after extensive stakeholder consultations  with  the domestic industries and the  line Ministries/Departments.  As  was also informed  to  Hon'ble MP, Shri Kaushalendra Kumar vide letter dated 7 th October 2016, it is not presently feasible to  unilaterally  withdraw the tariff concessions as the India-Korea CEPA is an international bilateral trade agreement under which both the countries have taken on certain commitments. However, the agreement incorporates safeguard provisions which can be invoked, on a case by case basis,in case serious injury or threat thereof to the domestic industry from the other party is established.

(d) to (e) No compilation of production and sales data of Alu-Alu foils is presently available to substantiate that no one was producing Alu-Alu foils in India in 2010. Moreover, as per the details  provided  by  DGCI&S,  the  share  of  Korea  in  the  total  imports  of  Aluminium  foils under HS code 76072090 has been hovering at 16 to 21 % during the last three years. In the last year i.e. 2015-16, it was 16.49% of the total import.

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