Home / Knowledge / News / Textiles / India proposes customs duty on CAD files for 3D printing

India proposes customs duty on CAD files for 3D printing

22
Jul '20
Pic: Shutterstock
Pic: Shutterstock
Pushing its case for countries to be able to tax electronic transmissions, India recently proposed imposing customs duties on computer-aided design (CAD) files needed for 3D printing. Electronic transmissions are at present immune from taxation under the World Trade Organisation (WTO) regulations under a moratorium. South Africa has been backing India’s stand.

If the moratorium continues, foreign firms can export any software duty-free to developing countries to 3D print products that they currently manufacture and that will lead to ‘disruption in traditional manufacturing, resulting in job losses and declining incomes’, especially in sectors like textiles and clothing, footwear, auto-components, toys, mechanical appliances and hand tools, India said.

“An important policy instrument available for this purpose would be to impose customs duties on CAD files necessary on 3D printing,” India said at the WTO.

A paper by the United Nations Conference on Trade and Development had pegged India’s potential annual revenue loss by not taxing electronic transmissions at around $500 million.

Thirteen WTO members, including Australia, Canada, South Korea, New Zealand and Singapore, opposed any such tax in their proposal submitted last month.

Rejecting their proposal, which is based on a study last year by the Organisation of Economic Cooperation and Development, India said: “We do not agree with the OECD assessment that technologies such as 3D printing are unlikely to have far-reaching implications on trade in the near term.”

If current growth of investments in 3D printing continues, half of the manufactured goods will be ‘printed’ in 2060 and if investments in 3D printing doubles, this target will be achieved in 2040, India said, citing studies.

“This will wipe out almost 40 per cent of cross-border physical global trade,” it said.

New Delhi also said not all software would fall within the scope of the moratorium as some of them could be delivery of services through Mode 1 or cross-border supply, according to Indian meida reports.

It also emphasised that removal of the moratorium does not mean countries will necessarily impose customs duties across the board.

Fibre2Fashion News Desk (DS)


Must ReadView All

Pic: Shutterstock

Apparel/Garments | On 23rd Oct 2021

FDRA urges US govt to remove tariffs causing kids' shoe price spikes

The Footwear Distributors and Retailers of America (FDRA) has sent...

Pic: Sorbis / Shutterstock.com

Fashion | On 23rd Oct 2021

Calvin Klein & Louis Vuitton top 2 trustworthy brands for US customers

Calvin Klein, an iconic American brand that has existed since 1968,...

Pic: Breuninger

E-commerce | On 23rd Oct 2021

Fashion retailer Breuninger to launch e-commerce portal in Poland

After Austria (2017) and Switzerland (2019), fashion company...

Interviews View All

Textile Industry, Head honchos

Textile Industry
Head honchos

Delay in adopting water sustainability both financially & environmentally...

Textile Industry, Head Honchos

Textile Industry
Head Honchos

Increase foreign exchange and create jobs

Textile Industry, Head honchos

Textile Industry
Head honchos

Extension of RoSCTL to boost textile exports

Aashumi Mahajan,

Aashumi Mahajan

The Luxe Maison is a premiere haute couture e-boutique established after...

Abdullah Mohammad Saad Hossain,

Abdullah Mohammad Saad Hossain

Saad Group is a leading vertically integrated textile group in Bangladesh. ...

Richard Armitage,

Richard Armitage

Adaptive Control automates, controls and monitors machines, systems and...

Shlomzion Chen, Seevix

Shlomzion Chen
Seevix

Seevix Material Sciences Ltd, which develops and manufactures synthetic...

 Natacha Defeche, Edana

Natacha Defeche
Edana

Since 1971, EDANA, the International association serving the nonwovens and ...

Dave Rousse, INDA

Dave Rousse
INDA

INDA, a global association of the nonwoven fabrics industry, has been...

Sandeep Gonsalves & Sarah Gonsalves, Sarah & Sandeep

Sandeep Gonsalves & Sarah Gonsalves
Sarah & Sandeep

Established in 2012, Sarah & Sandeep is a luxury menswear label...

Ruma Devi, Gramin Vikas Evam Chetna Sansthan

Ruma Devi
Gramin Vikas Evam Chetna Sansthan

<b>Ruma Devi i</b>s a jet-setting promoter of artisans who has empowered...

Raghavendra Rathore, Label Raghavendra Rathore Jodhpur

Raghavendra Rathore
Label Raghavendra Rathore Jodhpur

Being one of the first designers to use the "Brand India" positioning for...

Press Release

Press Release

Letter to Editor

Letter to Editor

RSS Feed

RSS Feed

Submit your press release on


editorial@fibre2fashion.com

Letter To Editor






(Max. 8000 char.)

Search Companies





SEARCH

Leave your Comments


October 2021

Subscribe today and get the latest update on Textiles, Fashion, Apparel and so on.


Advanced Search