Syllabus: GS-III, Subject: Economy, Topic: External Trade, Issue: Duties on e-transmission
Context: India urged the WTO to reconsider its ban on charging customs duties for e-commerce goods and services.
Duties on electronic transmissions (e-commerce):
- Earlier physical goods like books, videos and music cassettes were governed by traditional tariff rules.
- Now such services are available as digital services (e-transmission).
- In 1998, World Trade Organization (WTO) members agreed a moratorium on customs duties on electronic transmissions (e-commerce) which were periodically extended.
- Developing nations are facing massive loss in potential revenue with such imports from developed countries.
- Hence nations like India, South Africa and Indonesia are set to oppose efforts by the U.S. and Europe to extend the moratorium.
- The moratorium was last extended during the 12th Ministerial Conference in Geneva in 2022.
