Tariff Commission
Ministry of Commerce & Industry
Government of India

 
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HISTORY

 

(A)             EARLIER TARIFF COMMISSION  (1951)

 

The earlier Tariff Commission was set up under the Tariff Commission Act of 1951, superseding the Tariff Board, which was established before independence under the Ministry of Commerce. It had the following functions: 

 

·         Grant of protection for the encouragement of industry in India

·         Adjustment in duties of customs or other duties in relation to any industry

·         Action relating to the dumping of goods for import or otherwise

·         Action in cases where industry has been taking undue advantage of tariff protection .

 

The Commission was a quasi-judicial body. Its reports were recommendatory in character. It was given statutory powers through the Act and had authority to undertake suo moto studies. The Commission submitted reports to the Central Government, which were placed in Parliament

 

         The Commission was wound up in 1976 by the Tariff Commission (Repeal) Act of 1976. The Bureau of Industrial Costs and Prices (BICP) emerged as successor to the Commission and inter alia conducted tariff studies and made tariff recommendations to government

 

(B)            BUREAU OF INDUSTRIAL COSTS AND PRICES (BICP)

 

         The Bureau of Industrial Costs and Prices (BICP) was set up in the Department of Industrial Development by the Government Resolution in 1970, on the basis of the recommendations of the Administrative Reforms Commission. Its role was to advise government on a continuing basis on industrial costs and prices and on issues relevant to cost reduction, improvement in industrial efficiency and pricing of industrial products.

 

        Chairman of the rank of Secretary to the Government headed the Bureau. There were three whole-time members of the level of Joint Secretary specialised in finance, science & technology and economics. The Bureau also had ex officio members.

 

            BICP had its own cadre of scientific and technical officers, the requirement of cost accountants and economists was largely met by the Indian Cost Accounts Service and the Indian Economic Service respectively. The technical division was recognised as an S&T institution by the Department of Science and Technology , Government of India.

 

         The Bureau adopted a holistic approach encompassing in an integrated manner issues connected with technology , normative prices based on achievable technological efficiency norms, tariffs for efficient industrial growth and international competitiveness.

 

            The manufacturing sector was widely covered and industries like fertiliser, drugs and pharmaceuticals, metals and metallic products, newsprint, cement, petrochemicals etc. were studied on a continuing basis. Decisions relating to price fixation by governmental intervention were based on costing studies done by the Bureau. Industrywide studies were also undertaken to comprehensively review technical and marketing developments. The pricing of services like telecommunications was linked to BICP analysis before regulatory authorities were set up. Customs and excise tariffs were studied at the macro level and specific recommendations made to the Finance department from time to time on major sectors and products. BICP produced more than 862 reports.

 

BICP reports offered recommendations relating to the following areas:

 

·        Pricing, efficiency improvement and cost reduction

·        International competitiveness and technological upgradation

·        Tariff levels, tariff rationalisation and shift of items to OGL

·        Price and distribution decontrol

·        Environmental policy measures

·        Energy and water conservation

·        Pharmaceutical pricing

·        System management