Synopsis
India is pushing for an extended moratorium on import duties for digital goods transmitted across borders. This move aims to provide businesses with greater certainty and predictability for their operations. The World Trade Organisation is currently discussing the duration of this moratorium. India also wants this period to align with the moratorium on intellectual property complaints.The 14th ministerial conference, which concluded in the early hours on March 30 in Yaounde, the capital city of Cameroon, failed to reach a consensus on the moratorium.
"We discussed it amongst the ministers, and we were generally of the opinion that to bring more certainty and predictability to businesses, we must this time consider a longer term. This is still under discussion amongst various countries, and will be finalised in the next month or two in Geneva," Goyal told reporters here.
The remarks reflect a shift in India's stance, which had earlier supported a customary two-year extension.
The talks failed on the issue in WTO as the US was pushing for a five-year extension, Brazil was for two years, while some member countries agreed to a four-year extension.
"India's stand was that we should look at a little longer period, so that businesses can plan their business activities for a longer period," he added.
The minister also said India's stand is that the period of extension of moratorium on e-commerce taxation and moratorium on non-violation complaints under the Trade Related Intellectual Property Rights (TRIPS) Agreement of the WTO should be similar.
The safeguard against non-violation complaints expired on March 31, 2026. This moratorium has been in force since 1995.
"While consensus could not be reached on the period of extension, we have reiterated that the extension of moratorium on custom duties on electronic transmission will be co-terminus, and it must align with the TRIPS non-violation moratorium," Goyal said.
In May 1998, WTO members agreed for the first time not to impose customs duties on electronic transmissions for two years, a moratorium that has been extended biennially since then.
Its expiry would open the door to imposing tariffs on e-commerce. E-commerce moratorium expires for the first time in 26 years.
Customs duties are usually applied by WTO members on imported goods, but since 1998, they have agreed not to impose tariffs on electronic transmissions. WTO members have agreed not to impose customs duties on electronic transmissions such as digital downloads and streaming since 1998.
On e-commerce moratorium, India has advocated strongly for the digital divide to be bridged, for building digital infrastructure and skill sets in the Least Developed Countries (LDCs) and developing countries and for regulations to empower them in the future, Goyal added.
