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June 2018

International Trade Amicus: April 2018

by Jayant Raghu Ram

US steel and aluminium tariffs and the WTO’s security exception: Unsecuring multilateral trade?

The United States has instituted measures imposing high duties on all imports of steel and aluminium, justifying these measures on the basis of its national security requirements. However, the possibility that Article XXI of GATT will provide a credible defence in this instance is tenuous. USA would be required to demonstrate that the existence of either time of war or other emergency in international relations, directly or indirectly necessitates the need to resort to these measures. Observing that US has cited weakening of its internal economy on account of increased imports as one of the major reason, it is felt that even if this is considered to fall within ambit of “essential security interests”, derogation from the obligations for protection can be permitted only if there is a reasonable nexus with a state of war or an emergency in international relations which the US might be facing. According to the author, the United States’ spirit and motivation for implementing the impugned measures is also highly suspect.

 

Trade Remedy News

  • Acrylic Fiber from China, Belarus, Ukraine, European Union, Peru – India terminates anti-dumping investigation
  • Carbazole Violet Pigment 23 from India – USA issues Final Results of Antidumping duty Administrative Review; 2015-2016
  • Cold-Drawn Mechanical Tubing of Carbon and Alloy Steel from India - Final affirmative determination of sales at less than fair value made by USA
  • Cold-Rolled Steel Flat Products from India – USA issues notice of rescission of countervailing duty and anti-dumping duty Administrative Review; 2016
  • Digital Offset Printing Plates from China - Sunset review by Indian authorities recommends non-extension of ADD
  • Epoxy Resins from China, European Union, Thailand, Taiwan, Korea RP - India initiates anti-dumping investigation
  • Ethylene Vinyl Acetate (EVA) Sheet for Solar Module from China, Malaysia, Saudi Arabia, South Korea, Thailand – India initiates anti- dumping investigation
  • Fishing Nets from Bangladesh, China – India imposes definitive anti- dumping duty
  • Glassware from China and Indonesia - India imposes definitive anti- dumping duty
  • Glycine from India – USA initiates less-than-fair-value investigations
  • Graphite Electrodes from China – Indian authorities initiate Mid-term review
  • Hydrogen Peroxide from Bangladesh, Taiwan, Korea RP, Indonesia, Pakistan, Thailand – DGAD re-issues final findings pursuant to CESTAT’s remand Order No. 58470-58474/2017 dated December 20, 2017
  • Methyl Ethyl Ketone from China, Japan, South Africa, Taiwan – India imposes definitive anti-dumping duty
  • New Pneumatic Tyres for Buses and Lorries, from China – India initiates countervailing duty investigation
  • Non-Plasticized Industrial Grade Nitrocellulose excluding Nitrocellulose Damped in Ethanol and Waterwet, from Brazil, Indonesia, Thailand – India initiates anti- dumping duty
  • Partially Oriented Yarns from China - Sunset review by Indian authorities recommends non-extension of ADD
  • Phosphorus Pentoxide from China – India imposes definitive anti- dumping duty
  • Plain Gypsum Plaster Boards from China, Indonesia, Thailand, UAE - Sunset review by Indian authorities recommends non-extension of ADD
  • Saturated Fatty Alcohols from Indonesia, Malaysia, Thailand – Indian authorities recommend definitive anti-dumping duty
  • Soda Ash from Russia and Turkey – Indian authorities initiate Sunset Review and extend anti-dumping duty
  • Sodium Perchlorate from China – Indian authorities reject application for initiation of Sunset Review investigation
  • Stainless Steel Bar from India – USA issues final results of changed circumstances review and reinstatement of certain companies in the anti- dumping duty order
  • Stainless Steel Flanges from India – USA issues preliminary affirmative determination of sales at less than fair value
  • Viscose Filament Yarn from China - Sunset review by Indian authorities recommends non-extension of ADD
  • Welded Stainless Pressure Pipe from India – USA rescinds countervailing duty Administrative Review; 2016

 

WTO News

  • USA-China disputes – China disputes US tariffs on steel, aluminium products and tariff measures on certain Chinese goods
  • Canadian commercial aircraft dispute - Panel circulates preliminary ruling
  • Korea-Japan disputes – Panel report in Korean duties on pneumatic valves from Japan, and appeal filed in dispute involving Japanese food import restrictions
  • USA-Canada disputes on US duties on softwood lumber - WTO establishes two panels
  • Safeguard investigations initiated by Indonesia and South Africa

 

India Customs & Trade Policy Update

  • Pre-notice Consultation Regulations notified to provide for consultations with the proper officer prior to issue of show cause
  • BCD increased on certain parts for use in manufacture of cell phones
  • Solar panels/modules equipped with bypass and/or blocking diodes – Classification when either under Heading 8501 or under 8541

 

Ratio decidendi

  • Anti-dumping investigation – Determination of analogue country - Investigating authorities are not required to use any country as the appropriate analogue country solely because it was a market economy third country which was subject to the same investigation – CJEU
  • ‘Use’ of product when not to be sole consideration for its classification - United States Court of Appeals for the Federal Circuit
  • SAD refund – No condition that subsequent sale has to be in same form - Supreme Court of India
  • End-use of imported goods when valid for classification - CESTAT Mumbai

 

April, 2018/Issue-82 April, 2018/Issue-82

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