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Unformatted text preview: The Harley deal was crafted by a mangoes-for-bikes diplomatic overture with the US. The Foreign Investment Promotion Board (FIPB) had cleared Harley’s investment proposal in April 2007 and the US government lifted an 18-year ban on mango imports from India as a quid pro quo. The completely built units of Harley will attract a 60 per cent import duty. Local taxes will push the total levy to around 104 per cent, making the iconic bike cost between Rs 6 lakh and Rs 15 lakh. But Indian officials discounted the possibility of an immediate cut in duty for one motorcycle brand. “When duties come up for review next year, we will see,” an official said. India and the US have had differences over America’s demand for reducing tariff on a host of farm products, including foodgrain. Two years ago, the US stopped duty-free import of Indian gold jewellery and brass lamps. The American move was prompted by India’s refusal to reduce import tariffs on manufactured goods from the West....
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This note was uploaded on 12/11/2011 for the course INTBUS 200 taught by Professor Tuli during the Fall '11 term at University of Wisconsin.
- Fall '11