India fails boric acid test due to quantity checks on imports: US

THE tussle between the US and India over the `restrictions’’ on imports of boric acid — a chemical used as insecticide and also in antiseptics, flame retardants and as a controlling agent for uranium fission — has intensified.
    The US has rejected the explanation given by India at the WTO that there is nothing wrong with the country’s import licensing procedure for the chemical as it is through the automatic path. Automatic import licensing is where approval of application is granted in all cases. “India appears to exercise discretion in granting the quantity that can be imported under the license. We would therefore appreciate clarification from India regarding how India considers this to be an automatic import license procedure (for boric acid),” the US said in a submission made at the WTO.
    The US, which is a major producer and exporter of pharmaceuticals and chemicals, wants India to relax its import policy for boric acid as the present system makes it very difficult for countries to sell the chemical to India.
    Speaking to ET, a commerce department official said that India had already clarified that the no-objection certificates which traders required for importing boric acid was only to ascertain the purpose for which it was being used. Since import of pesticides into the country is restricted, the government has to be sure that the imports were for non-pesticide use.Domestic producers have to maintain equivalent measures such as an ``elaborate’’ production and sales record to show that it was for non-insecticide use.
    The US submission added that the country continued to be concerned about the questions on the import license application that relate to the precise end-use of boric acid and the impact that the end-use requirement has on the ability of intermediaries to sell non-insecticidal boric acid in India.
    “We therefore request that India explain in greater detail why this information is necessary. Additionally, how does the import license procedure ensure that the good is not being misused once imported into India,” it said. It is now India’s turn to come up with a satisfactory reply. If the US is dissatisfied with the consultations, it could ask for establishment of a panel at the WTO to fight out the issue.
PROFIT & LOSS
What’s in it for the US?
The US, which is a major producer and exporter of pharmaceuticals and chemicals, sees a good market for boric acid — a chemical used as insecticide and also in antiseptics, flame retardants and as a controlling agent for uranium fission.
American allegation
US seeks clarification from India regarding how India considers boric acid to be in automatic import license list with quantitive restrictions in place
Indian response
India says the no-objection certificates that traders require for importing boric acid is only to ascertain the purpose for which it was being used. The govt wants to ensure the imports are for nonpesticide use.