India challenges WTO panel ruling on ICT import duties at appellate body

New Delhi, Dec 15 (PTI) India has appealed against a ruling of the World Trade Organization's (WTO) trade dispute settlement panel, in a case filed by the European Union against New Delhi's import duties on certain information and technology products.

The panel in April had ruled that import duties imposed by India on certain information and technology (ICT) products violate global trading norms.

"India notified its decision to appeal the panel report in the case brought by the European Union (EU) in 'India Tariff Treatment on Certain Goods'. The appeal was circulated to WTO members on December 14," WTO said in a statement.

In May, India filed another appeal in a similar dispute case initiated by Japan regarding the tariff treatment that India accords to certain goods in the ICT sector.

According to WTO rules, a WTO member or members can file a case in the Geneva-based multilateral body if they feel that a particular trade measure is against the norms of WTO.

WTO's dispute settlement body (DSB) is one of the important arms of WTO. Besides monitoring global exports and import-related rules, it adjudicates trade disputes between the member countries.

Bilateral consultation is the first step to resolve a dispute. If both sides are not able to resolve the matter through consultation, either of them can approach for establishment of a dispute settlement panel.

The panel's ruling or report can be challenged at WTO's appellate body. Interestingly, the appellate body is not functioning because of differences among member countries to appoint its members. Several disputes are already pending with this body, which is not functional as the US has been blocking the appointment of the members.

"India hereby notifies DSB of its decision to appeal to the appellate body regarding certain issues of law covered in the panel report and certain legal interpretations developed by the panel in the dispute 'India Tariff Treatment on Certain Goods in the ICT sector'," the communication submitted by India to WTO said.

India has sought review by the appellate body of the "errors of law and legal interpretation" by the panel in its report and findings.

The EU on April 2, 2019 had challenged the introduction of import duties by India on a wide range of ICT products, including mobile phones and components, base stations, integrated circuits and optical instruments.

The EU had claimed that the measures appear to be inconsistent with certain provisions of WTO. Later, Chinese Taipei and Japan also joined the dispute.

New Delhi's decision to approach the appellate body assumes significance as India and the EU were engaged to resolve the issue bilaterally.

In September, the two regions had asked WTO's DSB not to adopt a ruling against New Delhi's import duties on certain ICT products till December 18 as both sides were engaged in bilateral talks to resolve the matter. PTI