Latest news with #VimalPruthi
Times of Oman
01-08-2025
- Business
- Times of Oman
Tariff to have short-term impact as India-US trade talks continue: EY India executive
New Delhi: The US administration's 25 per cent blanket tariffs on Indian goods is "unfortunate" but are poised to be short-lived, as both the partner countries are working on a Bilateral Trade Agreement (BTA), Vimal Pruthi, Partner, International Trade, EY India, said on Friday. "This is an unfortunate move by the Trump will impact, in short term, on some of the export sectors like textile, gems, and jewellery, engineering goods, FMCG products. It is surely going to impact in the short term," Pruthi told ANI. He sees the impact of tariffs going away as and when the interim trade deal is reached. "We all know that Indian government is already in discussion with the US administration for a trade deal, so we can hope that in the coming months or so the trade deal will be concluded and this impact will go away," the EY India executive asserted. Asked whether he sees this move by the Trump administration as part of a larger protectionist agenda or India being specifically targeted, he said it can be seen from the lens of 'Making America Great Again' plans. "President Trump's policy is America first. So this is a move towards that. They want to protect their interests. It's their right. They are doing this with all the countries. There is nothing specific with India," he said. Should India retaliate with counter tariffs or what could be the ideal response from the central government, Pruthi opined that any aggressive steps can derail trade deal negotiations. "India can levy tariffs, but at this moment when we are already in discussions for a trade deal, any aggressive step can derail the discussions. So, therefore India should keep its cool. The maturity should be shown -- the momentous pleasure by responding to any remarks should not be taken." On Wednesday, President Trump announced the imposition of 25 per cent tariffs on Indian goods and an unspecified 'penalty', even as there were hopes of an interim India-US trade deal before August 1 deadline -- which would have otherwise helped avoid elevated tariffs. There were some reservations from the Indian side on the US demand for opening up the agricultural and dairy sectors for the US. Agriculture and dairy are critical for India as these two sectors provide livelihood opportunities to a large section of its people. Commerce and Industry Minister Piyush Goyal made a statement in both houses of the Parliament, stating that the government is examining the impact of tariffs and will take all necessary steps to safeguard the national interest. "Government gives utmost priority to the safeguarding of welfare of farmers, labourers, entrepreneurs, industrialists, exporters, MSMEs and stakeholders of the industrial sector. We will take all necessary steps to safeguard our national interest," Piyush Goyal said in Lok Sabha on Thursday. On April 2, President Trump signed an executive order for reciprocal tariffs on various trade partners, imposing varied tariffs in the range of 10-50 per cent. He subsequently kept the tariffs in abeyance for 90 days, while imposing a 10 per cent baseline tariff. The deadline was to end on July 9, and the US administration later pushed it ahead to August 1. In March, India and the US initiated talks for a BTA, with the countries stating that the first tranche would be signed by the fall of 2025. (October-November). US President Donald Trump had imposed reciprocal tariffs on dozens of countries with which the US has a trade deficit. Since assuming office for his second term, President Trump has reiterated his stance on tariff reciprocity, emphasising that the United States will match tariffs imposed by other countries, including India, to "ensure fair trade".
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Business Standard
29-06-2025
- Business
- Business Standard
Govt aims to clear SVB backlog in two years with bulk entry processing
The government plans to clear the backlog of Special Valuation Branch (SVB) cases within two years and upgrade customs systems to allow bulk finalisation of Bills of Entry — a significant relief for companies whose imports from related entities are scrutinised by SVB to ensure fair valuation and prevent revenue loss, a senior official said. According to sources, thousands of such cases are pending nationwide, involving companies such as Adani Enterprises, Ambuja Cements, GE Power Services India and Asian Paints, among others. Emails sent to these companies and the Finance Ministry remained unanswered at the time of publishing. The official said the Centre plans to issue a detailed circular on the SVB revamp by July. The new framework will adopt a more consultative approach, with customs engaging importers earlier in the process. It will also reduce paperwork and seek to resolve valuation issues without prolonged disputes. 'While consultations are part of the current SVB process, they often take considerable time due to repeated document checks and extended correspondence. The reforms aim to simplify this by streamlining paperwork, introducing time limits, and using digital platforms for faster resolution,' the official added. These changes align with the Union Budget 2025 proposal to complete provisional assessments within two years — a timeline that would apply to both pending and future SVB matters. As part of the reforms, customs is upgrading systems to allow officers to finalise multiple import shipments at once, instead of handling each shipment individually. 'Previously, customs officers had to finalise each Bill of Entry one by one because each shipment had separate records, values, and duty calculations. The upgraded system will allow officers to upload data for several shipments and finalise them in bulk. This will significantly reduce delays and save time for both customs and importers,' the official said. Another senior official noted that the reforms will address long-standing procedural bottlenecks that persist despite the 2016 guidelines. These include non-issuance of investigative reports to importers, lack of a mechanism to adjust Extra Duty Deposits (EDD) — security deposits collected during investigations — against final customs duty, and delays in show cause notices, adjudication and closure of assessments. Vimal Pruthi, Partner, Customs and Indirect Tax at EY, said there is a strong need to modernise SVB procedures, given the significant backlog. He said that in recent discussions with customs officials, industry stakeholders were informed of efforts to clear pending matters through simplified documentation and faster processes. 'Industry hopes that for future imports, a more trust-based system will be adopted, where importers can submit concise declarations and, unless the declared price is marked as provisional, transactions may move directly to final assessment without lengthy delays,' Pruthi said.
