India to oppose extension of moratorium on imposition of customs duty on e-commerce trade at WTO

There is a need to discuss the scope of the moratorium as there are revenue implications because of it.

As per estimates, the potential tariff revenue losses to the developing countries are about USD 10 billion every year. For India, it could be over USD 500 million every year.

"There is a need for a clear definition of e-commerce trade. We need policy space for the sector," the official added.

The moratorium on e-commerce stops countries from levying customs duties on electronic transmissions. The World Trade Organisation (WTO) members have agreed not to impose customs duties on electronic transmissions since 1998 and the moratorium has been periodically extended at successive ministerial conferences (MC), which is the highest decision-making body of the 164-member body.

Government sources also indicated that India wants detailed discussions & consensus on the moratorium before any decision is taken on the extension of its tenure.

Noting that problems have arisen due to many goods getting digitised, India feels that the scope of the moratorium needs to factor in those physical goods which have been digitised over the course of time.

Having already placed papers inviting further discussions on subjects like consumer protection, digital public infrastructure and competition; government sources have stressed on the need to promote competition in the field of e-commerce.