The Big Picture - Import Monitoring Mechanism

Media reports over the last few days have been reporting that the government is planning to raise non-tariff barriers on a number of products by putting in place product-specific monitoring systems or by allowing them only through licensing by adding them to the restricted list. Financial dailies have been reporting that various ministries including commerce, finance, along with line ministries are discussing the plan and a series of meetings are taking place in view of Prime Minister Narendra Modi's call for Atmanirbhar Bharat which would mean reduce import dependency and boost local manufacturing. On this edition of The Big Picture we will analyse what is Import monitoring mechanism.

Guests -
1- Subhash Chandra Pandey, Former Advisor, Ministry of Commerce and Industry, GoI
2- D. K. Aggarwal, President, PHD Chamber of Commerce & Industry
3- Jayant Dasgupta, Former Ambassador at WTO

Anchor - Frank Rausan Pereira

Producer - Sagheer Ahmad

[vedangbhatt]

D K Aggarwal has made good points about cost of logistics and cost of productivity. Also Vishnu sir has hit the nail on the head by raising good points about monopoly which some states enjoy

[rachnaraj]

Summary
Topic :Import monitoring sysytem.
What is Import monitoring system (mechanism)
A. It is putting in place product specific monitoring sysyem or allowing only through licensing by adding them to restricted list.
It will hepl product specific import controls based quality

Such mechanism is implemented under " foreign trade development regulation act, 1992.
Director general of foreign trade (ministry of commerce ) is the nodal agency. It notifies the regime for regulating the imports/exports .
All the goods are classified onto 8 digit Indian trade classification harmonised system.

As on date, importability or the exportability of items in India is classified into three categories namely, (a) Prohibited items, (b) Restricted items including items reserved for STEs or requiring permission etc., and (c) Freely importable.

Two Objectives:
1) Govt can take necessary policy interventions when required.
2) It will help in detecting the product origin country.

Import monitoring mechanism is different for different products it depends on which aspect of the product are imported .
There can two barriers put in plar namely:
1) Tarrif barriers:When two countries trade in the goods, a certain amount is charged as a fee by the country, in which goods are entered, so as to provide revenue to the government as well as raise the price of foreign goods, so that the domestic companies can easily compete with the foreign items. This fee is in the form of tax or duty, which is called a tariff barrier
In India today out of 3500 goods imports such tarrif are imposed on 1000 goods
2)Non-tariff barriers refer to non-tax measures used by the country’s government to restrict imports from foreign countries. It covers those restrictions which lead to prohibition, formalities or conditions, making the import of goods difficult and decrease market opportunities for foreign items.
This non tarrif barriers help with online monotoring of imports .

** the idea behind this import manufacturing mechanism is not to discriminate between import or domestuc product . It is just to see if the product is meeting certain quality specifications. The fore said standards aplly even to the domestic products .. until jow India had been following the free regime which led to the ingress of sub standard products getting dumped .

WTO issue :
Until the restrictions are based on the scientific temper their may not be any harmful effect on any multi lateral or bilateral relations.
What India needs to do more???
1. Make our domestic industries competitive enough to meet the global standrads.
2. Enforceability of contracts.
3. Ease of doing business and reduce the cost of doing business.
4. Once the details of products is known about imports, take immediate initiations of production here.

Things that needs to be taken care of :
1. Not to disturb the supply chain of the manufacturing industry as it has interlinkages with exports.
2. Unnecessary burden on our importers by making it cubersome and time consuming process.
3. Transparency and automaticity .

[manishgym]

Thanks sir. It's an important topic

[rashmitahazarika]

Plz discuss on matters prevailing in Assam like baghjan well burst, Dehing patkai and every year flood (forcasting centre )

[abhishekbakolia]

I just analysed that Former Ambassador are the most free officers, who are always there to shed their views

[SAMARTHYA_IAS_JUDICIARY]

India as a nation can't have better time than this pandemic to support local cluster development of manufacturing hubs....

[Nik-zfxl]

India has to illuminate it's domestic economy. Otherwise this regulations clamp on further going of the nation.

[ajeetgupta]

Better sound and nice discussion thank you so much rstv

[deepakyaduwanshi]

Improvement in audio quality..
Thankyou RSTV 🙏

[Navin]

Meaningful discussion and good quality audio. Thanks!

[paruh]

Good discussion tq sir and all geasts in this program

[sreelatha]

Import monitoring mechanism is a good decision

[karthickkumar.u]

Good step goes the government takes the action against the import monitoring mechanism. Very important think do to importing materials. ( we r not any specific countries against the action. We need good quality and quantity)

[rajeev]

Thanks a lot for resolution of audio quality issue 😊😊🙏🏻🙏🏻

[Rahulpriye]

We should be very watchful & careful while putting some kind of import restrictions to becoming a self reliant.On the other hand, ease of doing business should be further eased out in order to get foreign investment

[pabankumar]

Tp krn s gpt rog dkhe dt h aaj ka tp h m tp rha ho

Many Industry-owners in India are essentially rent-seekers rather than true industrialists. Real industrialists have their own R&D, they innovate, improve their products & toil to find their own markets. Rent-seekers thrive on bribes or on political proximity with politicians to get Govt favors in taxes, loans & land allotment and preferential govt contracts &
indulge in import of most of constituent parts of their products under exemptions of customs duty etc.
Recently one industrialist on a TV program was grumbling that recent import restriction from China has affected his 2-wheeler production as he had been importing their wheels from China! If wheels are imported from China than more difficult engine & other parts must also have been imported from some other country making him only a screw-driver screwing industrialist. Product-specific monitoring system on imports will remove trash from genuine industrialists. Post-Covid-19, it would also save jobs of Indian workers giving preference to domestic industries. I

[pabankumar]

Rmn peta ka nam jyber puspa ptene jayber nkle sstr s hmla keya h hmla k jurm m sja jl

[sreelatha]

Actually our government introduce make in india but its completely failed .now we ban chinese products and apps its time to change again make in india play important role to develop our products own.government should support and provide lot of schemes to boost our industrial way for doing business and its also chance for growing economy ..

[bharatiya-akp]

But increase in fuel prices is like apply brakes to economic growth