The U.S. lodged its complaint with the Geneva-based arbiter in March 2007, saying India imposes ``excessive'' tariffs on imported wine, beer and distilled spirits. They had filed a case in may 2007 against India's 'discriminatory policy'.
At that time there was a basic import duty of 100% but there was an additional duty of 20-75% ad valoram on wines which made it a total of 264%, when a Special Additional Duty of 4% was also added.
In July 2007, India removed the special additional import duty in keeping with its commitment, though it increased the import duty to 150%-within the limits of WTO. Following this measure, the EU first suspended its case and later withdrew it. The US continued with the case.
In July Maharashtra increased the excise duty from Rs.200 a liter to 150% on the imported duty free price. Later, in November this was increased further to 200%, making total duties at around 423%, even more than before. However, US chose not to take cognizance of this increase while pursuing their case.
The reaction from the US has been that of disappointment. ' The United States finds the panel's report deeply flawed and very troubling both in terms of the specifics of this dispute and because it could have broad, negative effects on members' tariff commitments if the panel's approach were ultimately adopted by the WTO,' said Gretchen Hamel, a spokeswoman for the U.S. trade office in Washington, according to a report by Bloomberg.
The U.S. hasn't decided whether to appeal the ruling, she said.
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