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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
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