Possible duties on Chinese imports over Covid-19 scare

India may impose duties on top 100 Chinese imports

The Commerce Department of India is considering a raise on import duties on Chinese imports over the Coronavirus (Covid-19) outbreak. Although strict measures are being undertaken to quarantine the infected and restrict its spread, further measures are to be put in place, especially after the total death toll due to the virus crossed the 2000 mark in China. The matter regarding the raise in import duties is to be finalized next week when the Department meets with industry bodies to discuss the decision and it's implications. 

This move has been taken at a time when the inflow of Chinese goods has taken a hit due to the epidemic. Raising the duties can curb the inflow of these goods in the Indian market, thereby allowing Indian manufacturers to establish a proper foothold in the home market. 

However, the issue remain that Indian manufacturers are not fully capable of utilizing and availing the proper machinery required to manufacture many of the products currently being supplied by Chinese industries. Progress in this area is to be the first step that has to be taken with regards to deepening the roots of the Indian manufacturers in the Indian markets.

The Confederation of All India Traders has however warned that existing inventories of basic, yet crucial commodities are rapidly being depleted especially at wholesalers and retailers. Furthermore, they have predicted prices to rise unless the problem is to be resolved by Mid-March. Industry bodies too, have warned that importers have not been able to obtain supples since January.

The International Chamber of Shipping recently stated that by implementing certain preventive measures for Covid-19, ports in China can continue to operate. It recommenced exit screening at all ports in the affected areas to isolate passengers displaying symptoms of the disease.

As of now, the government has ordered that Customs clearance facility remain open 24x7 at all sea ports and airports till May, as per the official statements released by sources.