July 08, 2007	Sunday	Jamadi-us-Sani 22, 1428

WASHINGTON, July 7: The United States on Friday welcomed as “positive” India's announcement that it would reduce some duties on alcoholic beverages following a WTO complaint.

“We are studying India's recent announcement that it has withdrawn additional duty on imports of alcoholic beverages,” said US Trade Representative Susan Schwab.

“Withdrawal of this duty would be a positive step in addressing US concerns. What we are seeking is a level playing field, consistent with India's WTO commitments.” Both the United States and Europe filed complaints to the World Trade Organisation, arguing that the layers of custom duties on wines and spirits ran counter to New Delhi's WTO commitments.

India on Thursday confirmed that a tax known as the additional customs duty had been removed earlier this week, while the basic customs duty had been raised.

“The total effect will be a reduction in prices,” spokesman BS Chauhan said in New Delhi.

US officials said in their complaint that India, on top of its basic customs tariffs, imposes an additional duty of 20 to 75 per cent on the value of imports of beer and wine and from 25 to 150 per cent on imports of distilled spirits.—AFP