WTO: India Against Customs Duties Moratorium Continuation on E-commerce Trade

An official said on Tuesday that India will oppose the continuance of the moratorium on customs taxes on e-commerce trade at the forthcoming World Trade Organization Ministerial and will fight for its repeal because it is harming poor countries. The official stated that India feels that a rethink of the moratorium is critical, citing the necessity of developing nations preserving policy space for digital advancement, regulating imports, and generating income through customs taxes.

“India and South Africa have been making submissions on the adverse impact of the moratorium on developing countries and other developing countries, such as Sri Lanka and Indonesia, have supported that stand,” the official said.

Since 1998, WTO members have agreed not to levy customs taxes on Electronic Transmissions, and the moratorium has been extended at consecutive ministerial conferences (MC). The WTO's 12th MC will be held in Geneva from June 12 to 15.

The United Nations Conference on Trade and Development estimates that the potential tariff revenue loss for developing nations owing to the e-transmissions embargo is $10 billion per year, compared to only $289 million for high-income countries.