Companies cry foul over cocoa powder import from Asean countries, Sri Lanka

Their complaint pegged total revenue loss to the exchequer at Rs 879 million in 2017-18

Domestic companies have complained to the Ministry of Finance that some Asean countries, particularly Indonesia, are misusing provisions of the preferential trade agreement (PTA) to export cocoa powder, used in making chocolates and other confectionery items, to India.  

Similar complaints were made against Sri Lanka for misusing norms under the free trade agreement (FTA) with India.

The companies want the finance ministry to ask the Directorate of Revenue Intelligence (DRI) to order an investigation into the issue. 

Cocoa powder imports draw a basic customs duty of 30 per cent. However, they are exempted from the duty under the PTA.