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DelWine
had already reported last week that the US had lost its case against India.
'We are disappointed with the news, but we do not want
to make any comment until we see the US Trade Representative or WTO reports,'
Wine Institute communications manager Gladys Horiuchi told decanter.com.
India is considered an important emerging market for
wine. The Wine Institute obtained a US$50,000 grant from the US government
in October 2007 to study the market. But high tariffs 'have suppressed
sales there to date,' according to a Wine Institute press release last
year.
'We do really very little business there, but it certainly
is a huge economy, and we would love to expand the market share for Napa
Valley wines,' said Terry Hall, at the Napa Valley Vintners Association.
After objections lodged with the WTO by the US and the
EU, the Indian government had taken action last July to eliminate the
ACD (Additional Customs Duty) on imported wines, while increasing basic
duties from 100% to 150%, still within the WTO limits.
The duties are however, charged on assessable value which
is the CIF value PLUS 1%. Also, a 4% special duty is still added on, to
be refunded later. The procedure to get the refund is so complicated that
most importers do not bank on getting the refund.
In addition, the additional excise duty of 200% was slapped
on by Maharashtra.
And this could be the thorn in the flesh with the US.
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