New Delhi, April 2 Extending the moratorium at the WTO on import duties for cross-border electronic transmissions for a longer period will bring more certainty and predictability to businesses, Commerce and Industry Minister Piyush Goyal said on Thursday.
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 this amongst the ministers, and we generally agreed that to bring more certainty and predictability to businesses, we must consider a longer term this time. This is still under discussion among various countries, and it will be finalized in the next month or two in Geneva," Goyal told reporters here.
These remarks reflect a shift in India's stance, which had earlier supported a customary two-year extension.
The talks failed on the issue at the WTO as the US was pushing for a five-year extension, while Brazil was for two years, and some member countries agreed to a four-year extension.
"India's stand was that we should look at a slightly longer period, so that businesses can plan their business activities for a longer period," he added.
The minister also said that India's stand is that the period of extension of the moratorium on e-commerce taxation and the 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 the moratorium on customs duties on electronic transmissions 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. The moratorium on e-commerce 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 strongly advocated for bridging the digital divide, for building digital infrastructure and skill sets in Least Developed Countries (LDCs) and developing countries, and for regulations to empower them in the future, Goyal added.
