03 November 2020

International Trade Amicus: August 2020


Suspension of lesser duty rule by the EU in anti-dumping investigations
By Vikrant Nehra

The European Union, like India, follows a lesser duty rule in case of anti-dumping investigations as is ‘desirable’ by the WTO’s Anti-Dumping Agreement. As per this rule, the amount of anti-dumping duty on imports should either be the margin of dumping or margin of injury, whichever is lesser. However, EU’s Basic Anti-dumping Regulation was revised in 2018 to provide that the lesser duty rule may be suspended if there are distortions of raw materials price and when a single raw material for which distortion is found accounts for not less than 17% of the cost of production of the product concerned. After these requirements are met, it still must go through the rigours of the Union interest test. Discussing few recent EU Regulations, the author states that stringent conditions attached to the application of Article 7(2a) makes it difficult for the EU industry to request for suspension of lesser duty rule even in cases where substantial information and evidence is available to establish ‘significant distortions’ and reject domestic costs and prices of the producers/exporters...

Trade Remedy News

  • Aceto Acetyl Derivatives from China – India initiates anti-dumping investigation
  • Acrylonitrile butadiene rubber from Korea RP – India extends anti-dumping duty till 03-12-2020
  • Aniline or Aniline oil from China – India imposes provisional anti-dumping duty
  • Black Toner in Powder form from China, Malaysia and Chinese Taipei – India imposes provisional anti-dumping duty
  • Caustic Soda from China and Korea RP – India extends anti-dumping duty till 17-11-2020
  • Choline chloride in all forms from China, Malaysia and Vietnam – Indian authority (DGTR) recommends definitive anti-dumping duty
  • Clear Float Glass from Malaysia – Indian authority recommends anti-dumping duty
  • Common Alloy Aluminium Sheet from India – USA issues preliminary affirmative countervailing duty determination and preliminary negative critical circumstances determination 
  • Digital Offset Printing Plates from China, Japan, Korea RP, Taiwan and Vietnam – India imposes definitive anti-dumping duty 
  • Diketopyrrolo Pyrrole Pigment Red 254 (DPP Red 254) from China – India extends anti-dumping duty till 16-11-2020
  • Dimethyl Formamide from China and Saudi Arabia – Indian authority recommends provisional anti-dumping duty
  • Flat Products of Stainless Steel from Indonesia – Indian authority recommends provisional countervailing duty
  • Flax Fabric from China and Hong Kong – Indian authority recommends continuation of anti-dumping duty after sunset review
  • Front Axle Beam and Steering Knuckles meant for heavy and medium commercial vehicles from China – India initiates sunset review of anti-dumping duty 
  • Glass Fibres and articles from Bahrain and Egypt – India initiates anti-dumping investigation
  • Naphthalene in both its forms from China, EU, Russia, Iran, Japan and Taiwan – India terminates anti-dumping investigation
  • Oil country tubular goods from India – Canada issues affirmative anti-dumping duty expiry review
  • Phenol from Thailand and USA – Indian authority recommends provisional anti-dumping duty
  • Phosphoric Acid (excluding Agriculture/Fertilizer Grade) from Korea RP – India continues definitive anti-dumping duty after sunset review
  • Poly Vinyl Chloride (PVC) Pastei Emulsion Resin from Korea RP, Taiwan, China, Malaysia, Thailand, Russia and EU – India initiates mid-term review of anti-dumping duty
  • Polythylene Terephthalate from China – Indian authority recommends provisional anti-dumping duty
  • Preserved mushrooms from India – USA initiates expiry review of anti-dumping duty
  • Single Mode Optical Fibre – Indian authority recommends safeguard duty
  • Single Mode Optical Fibre from India – China continues anti-dumping duty after expiry review
  • Soda ash from Turkey and USA – Indian authority recommends provisional anti-dumping duty
  • Solar Cells whether or not assembled in modules or panels – India continues definitive safeguard duty after review
  • Toluene Di-isocyanate (TDI) from China, Japan and Korea RP – India initiates mid-term review of anti-dumping duty

WTO News

  • Indian tariffs on ICT products – Panels established at request of Japan and Chinese Taipei
  • USA’s countervailing measures on softwood lumber from Canada violate WTO rules

India Customs & Trade Policy Update

  • Ventilators – Export Policy revised
  • Personal Protection Equipment and masks – Export Policy revised
  • Colour television sets – Import Policy revised
  • Rice – Policy conditions for export of rice revised
  • Faceless assessment – 2nd phase launched with inclusion of Delhi and Mumbai 
  • FTAs – Administration of Rules of Origin under Trade Agreements – Guidelines
  • Gold, silver, other precious and semi-precious metals and articles – Regulations notified for manufacture in special warehouse
  • Import of pets or live animals – Procedure revised

Ratio decidendi

  • Anti-dumping duty mid-term review – Selection of surrogate country and natural justice – CESTAT Anti-dumping Bench
  • Water signal/sensors, pressure sensors, heart film air mass meters/air mass sensors and temperature sensors are classifiable under Heading 9026 and not Heading 9032 – CESTAT Bengaluru
  • Digital cameras for capturing still images and videos classifiable under Tariff Item 8525 80 20 – CESTAT Mumbai

August, 2020/Issue-110 August, 2020/Issue-110

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