About Us

  • About Us

About Us

The present Tariff Commission in India is the result of the refinement and amalgamation of the functions of its predecessor organizations namely, Tariff Board, Tariff Commission (old), Bureau of Industrial Costs & Prices (BICP).

Genesis and Historical Background

  • Tariff Board: In the pre independence period, the tariff board under the Ministry of Commerce was in existence “to advise the Government on measures required for the protection of Domestic Industry”
  • Tariff Commission of 1951 : The Tariff Commission was setup in 1951 under the Tariff Commission Act of 1951 with statutory powers by converting Tariff Board into Tariff Commission and functions to recommend protection to Indian industries, change in duties of any goods, action in relation to dumping of goods and to undertake suo moto studies.

Bureau of Industrial Costs & Prices (BICP)

  • Government of India setup the Bureau of Industrial Costs & Prices (BICP) in 1970 vide Resolution No. 42011/1/70 E-1, dated 15.01.1970 on the recommendations of the Administrative Reforms Commissions in Department of Industrial Development with statutory powers under IDR Act to call for information and to advice on various issues pertaining to cost reduction, improvement of industrial efficiency and pricing problems in relation to industrial cost. The cost price and industrial efficiency studies by BICP covers both public and private sector industrial product. The scope of BICP’s functions enlarged to include services, utilities and non-market organisations.
  • BICP had independent status with appropriate administrative powers under section 19 of the Industries (Development and Regulation) Act of 1951 to call for data, records or papers pertaining to any industry.
  • Cost price studies of Bulk drugs and their formulations was also a continuing regular responsibilities of the BICP. Besides, Resource Efficiency studies in respect of Energy/Water Audit and material efficiency with the object of enhancing industrial productivity and reducing costs was also conducted by BICP.
  • BICP was authorised to undertakes suo- moto studies particularly where it felt that an investigation was desirable.

Repeal of 1951 Tariff Commission

  • The Tariff Commission was wound up in 1976 under “The Tariff Commission (Repeal) Act, 1976”. Due to stringent import and foreign exchange regulation, the necessity of protection of domestic industry through tariff regulation had lost significance and the observation of the second fiscal commission that the functions of the TC were largely similar to those of BICP. Thus, BICP emerged as a successor to the Tariff Commission and inter-alia conducted Tariff studies and made Tariff recommendations to the Government.

Restructuring of BICP

Formation of NPPA

  • With the ushering of the policy of liberalization of Indian economy in 1991 and setting up of the various Tariff Regulatory Authorities, the Government of India decided to restructure the BICP.
  • The National Pharmaceutical Pricing Authority (NPPA) was constituting under the Ministry of Chemical and Fertilizer in August, 1997 vide resolution dated 29.08.1997 entrusted with the task of price fixation, revision and other related matters for Bulk Drugs and Formulations under the Drugs (Price Control) order. Work relating to bulk drugs and formulation along with related manpower transferred from BICP to NPPA.

Tariff Commission in its current form

  • Keeping in view the commitments of the Government in WTO and the complexities in the Tariff and Tariff related matters which may have very vital impact on the bearing of the domestic industry as well as on the economy of the country, an independent Tariff Commission was setup by Government of India vide Resolution No. A-42012/24/91-E-IV dated 2nd September, 1997 under Department of Industrial policy and promotion, Ministry of Industry (now Department for Promotion of Industry and Internal Trade (DPIIT) Ministry of Commerce & Industry) with an objective to look into Tariff related matters and recommend appropriate levels of Tariff for different products and different industries keeping in view the larger economic interests of the country.
  • The Tariff Commission has also been empowered with appropriated administrative powers to order the production of any documents, books, registers, or records in connection with the industrial undertaking on the lines of the provision of section 19 of Industries (Development and Regulation) Act 1951.

Merger of BICP with Tariff Commission

A diagrammatical presentation of the continuity is as under:

Diagrammatical Presentation of the Continuity