India-US trade agreement may reduce Harley-Davidson prices

    Import duties on US motorcycles could be reduced if GSP eligibility is renewed.

    Published On Jun 11, 2018 02:59:00 PM

    10,160 Views

    India-US trade agreement may reduce Harley-Davidson prices

    The Indian government recently reduced the import duty on CBU motorcycles, while simultaneously increasing the duty for CKD ones. CBU rates were slashed from 75 percent to 50 percent, while CKD rates rose to 15 percent from the previous 10 percent. Since a large number of Harley-Davidson’s best-selling models in India are brought in via the CKD route, the Milwaukee manufacturer was understandably upset with this decision and was forced to hike the prices of its CKD and made-in-India models.

    This decision led US President Donald Trump to express his displeasure who then, erroneously, pointed out that Indian motorcycles “sold in the thousands” in the US while being subjected to “zero tax”. He also went on to suggest that the US should impose “reciprocal taxes” on these Indian motorcycles sold in the US.

    Now, it has emerged that India may cut import duties on Harley-Davidson bikes if the US renews its eligibility for the generalised system of preferences (GSP). Under this scheme, India exports around 3,500 products worth $5.6bn to the US each year at nil or low duties. In April, the Trump administration announced that it would be reviewing India’s GSP eligibility.

    The matter is likely to be tackled during trade minister Suresh Prabhu’s two-day visit to the US, beginning today.

    Also see:

    2018 Harley-Davidson Low Rider review, test ride

    Harley-Davidson to sell pre-owned motorcycles

    2018 Harley-Davidson Softail Deluxe review, test ride

    2018 Indian Roadmaster Elite launched at Rs 48 lakh

    Copyright (c) Autocar India. All rights reserved.

    Comments

    ×
    img

    No comments yet. Be the first to comment.

    Ask Autocar Anything about Car and Bike Buying and Maintenance Advices
    Need an expert opinion on your car and bike related queries?
    Ask Now

    Search By Bike Price

    Poll of the month

    The Creta will be the third Hyundai N-Line model in India. Should more mass-market brands have sporty sub-brands?

    Yes, it's something special for enthusiasts

     

    18.38%

    Yes, but only if there is increased performance

     

    44.42%

    No, it's just a gimmick to increase the price

     

    29.36%

    It doesn't always work; just look at Tata JTP

     

    7.85%

    Total Votes : 1567
    Sign up for our newsletter

    Get all the latest updates from the automobile universe