Tariff Commission
Ministry of Commerce & Industry
Government of India

 
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THE TARIFF COMMISSION-A PROFILE

 

            The present Commission was established on 2nd September 1997. Its mandate is to function as an independent expert committee to recommend appropriate tariff levels keeping in mind the larger economic interests of the country. 

 

         The terms of reference[1] of the Commission, revised on 8th September 1998, cover recommendations on matters regarding fixation of tariffs and tariff related issues for goods and services, evolving an overall tariff structure for the country tariff rationalisation and market access offers from the trading partners. The Commission looks into these areas when references are made by government departments and agencies. It is also expected to carry out impact analysis and technical studies on production costs and industrial competitiveness. It is requested to monitor and maintain data on tariffs and related matters.

 

         The Commission conducts studies on costing and price fixation matters referred to it by Central Ministries and agencies. These cover the manufacturing, service and agricultural sectors. Matters concerning State governments and their agencies have also been studied by the Commission. Studies are also often undertaken in response to issues raised by industry associations, manufacturing units etc. There is close liaison with database and information maintained by trade and tariff related bodies, agencies and government departments.

 

        The Commission is normally headed by a full time Chairman of the rank and pay of  Secretary to the Government of India, however presently the Commission is headed by a full time Member Secretary vested with the powers of Head of Department in the rank and pay of  Secretary to the Government of India. 

 

            The Bureau of Industrial Costs and Prices (BICP) was merged with the Tariff Commission on lst April 1999 to provide in-house support. Its data base and the accumulated multi-disciplinary expertise of economists, scientists, engineers, cost and chartered accountants, statisticians and administrators are now part of the Tariff Commission.

 

Recommendations are based on analysis of relevant economic parameters like trend in international trade, demand & supply, future prospects, technology, competitiveness, tax and tariff policy. Estimated fair price for a product or service are worked out taking into consideration actual operational and financial results and efficiency norms.

 

         The Commission has built on the work undertaken by the erstwhile BICP and produced its own costing & other reports[2] on a wide range of manufacturing, mining and processing sectors like fertiliser, metals, petrochemicals, engineering industry, coal sugar etc. Studies of specific industries have also been undertaken e.g. newsprint, cellular telephony, mini cement plants, shipbuilding etc.



[1] Will be linked (as ToR)

[2] Will be linked (as in Major Studies)