Uncertainty surrounding the proposed trade agreement between India and the United States has led to delays in customs clearance for dry fruit shipments, including walnuts and almonds, from the U.S. Importers are postponing their filings to avoid potential losses in the event of a possible 50% reduction in import duties.
These delays may further disrupt supply chains already affected by the suspension of Afghan imports due to the closure of the Wagah border, following heightened geopolitical tensions linked to Operation Sindoor, which targeted infrastructure in Pakistan and Pakistan-occupied Kashmir.
Currently, India imposes a 100% tariff on U.S. walnuts, both shelled and unshelled. Tariffs on almonds are set at approximately $0.42 per kilogram for almonds in shell and $1.21 per kilogram for almond kernels. These duties have been a point of contention, with former U.S. President Donald Trump referencing them during trade discussions with India.
The industry anticipates these duties may be reduced as negotiations progress. Ravindra Mehta, a founding member of the Nuts and Dry Fruits Council of India (NDFC(I)), stated, "Two commodities that are likely to see duty reduction in the proposed U.S.-India trade deal are walnuts and almonds."
According to Mehta, many importers are deferring the bill of entry process, calculating that the penalties for delayed clearance are more manageable than the potential financial losses if tariffs are reduced after their shipments have been cleared.
Source: Economic Times
