The Hindu Business Line : 'Daunting trade barriers' keep Harley away from India

NEW DELHI: Days after the Centre relaxed emission norms for foreign motorcycle companies, American cult bike maker Harley-Davidson today accused India of maintaining "daunting trade barriers" in the form of high duties to keep it away.

In an e-mailed interview, Harley Davidson Motor Co (HDMC) Vice-President, Government Affairs, MrTim Hoelter said that besides the emission norms, there was a far more "daunting trade barrier"' facing the company in India that it hope could be addressed.

"Presently, India maintains a 60 per cent rate of duty on heavyweight motorcycles. This extraordinary tariff rate when coupled with taxes of 30 per cent, would double the price of a Harley-Davidson motorcycle in India, were we to enter the market," he sa id.

Questioning the rationale behind India's high duty on heavyweight motorcycles, he said such a norm was to prevent companies like HDMC from entering the market.

"Frankly, we do not understand why India maintains a 60 per cent duty on heavyweight motorcycles when the average industrial tariff rate in India is only around 10 per cent," he said.

The practical effect of such an 'extraordinarily' high rate of duty is to dissuade firms like Harley-Davidson from entering the market and of course prevent the government from earning any tariff revenue whatsoever, he added.

Last month, New Delhi and Washington reached an agreement whereby the US eased phyto-sanitary norms for the Indian mangoes while India harmonised emission norms on bikes above 800cc with Euro III standards, paving way for import of Harley-Davidsons. - P TI

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