The Indian government has reduced import duty on fully-made (CBU) motorcycles and has imposed import duty on imported motorcycles (CKD) in India by importing spare parts from outside. Import duty on CBU motorcycles has been reduced from 75 percent to 50 percent and import duty on CKD motorcycle has increased from 10 percent to 15 percent.
Let’s say the American company Harley-Davidson was unhappy with the rate of import duty. Most of the motorcycles sold in India are imported from India by CKD Route. After this, the company raised the prices of its bikes in India.
After this decision, American President Donald Trump also expressed his displeasure. He said that thousands of motorcycles made in India are sold on zero tax. They also suggested that taxation should also be imposed on Indian motorcycles sold in the US.
Now it is believed that if the United States renews the Eligibility of the Generated System of Preference (GSP) then India can reduce import duty by Harley-Davidson Bike. Under its scheme, India exports 3500 items of $ 5.6 billion every year without any duty. In April, the Trump Administration had announced that the US would review India’s GSP eligibility.