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March 2020

International Trade Amicus: January 2020

Article

Use of ‘Particular Market Situation’ provision in Anti-dumping Investigations
By Divyashree Suri

Article 2.2 of the WTO’s Anti-dumping Agreement allows the investigating authority of a country to reject domestic prices of the exporting country for the purposes of calculating normal value if the domestic sales of the like product do not permit a proper comparison based on certain factors. The article in this issue of International Trade Amicus discusses at length the recent Panel report of the DSB in the dispute involving imposition of anti-dumping duty by Australia on A4 copy paper from Indonesia. The author notes though Australia’s rejection of exporter’s cost has been considered as inconsistent with Article 2.2 and Article 2.2.1.1 of the ADA but the critical issue regarding the use of ‘particular market situation’ provision, which formed the basis for the complaint by Indonesia, still lacks clarity. According to the author, interpretation of the term ‘Particular market situation’ by the Panel is overly broad and ignores relevant ‘context’ under Article 2.2 and conflicts with requirement in Article 2.2.1.1. as interpreted by the Appellate Body in EU-Biodiesel. The article also observes that the Panel has ignored the language of Article 2.2, which clearly states that ‘particular market situation’ should exist in relation to the ‘sale’ of the like product in the domestic market...

Trade Remedy News

  • Continuous Cast Copper Wire Rods from Indonesia, Malaysia, Thailand, Vietnam – India imposes definitive countervailing duty
  • Ciprofloxacin Hydrochloride from China – India initiates anti-dumping investigation
  • Dimethyl Formamide from China and Saudi Arabia – India initiates anti-dumping investigation
  • Newsprint in rolls or sheets, excluding glazed newsprint, from Australia, Canada, European Union, Hong Kong, Russia, Singapore and United Arab Emirates – India initiates anti-dumping investigation
  • Phenol from South Africa – India initiates sunset review of anti-dumping duty
  • Phosphoric Acid of all grades and concentrations from Korea RP – India initiates sunset review of anti-dumping duty
  • Viscose Spun Yarn from China, Indonesia, Vietnam – India initiates anti-dumping investigation
  • Corrosion-Resistant Steel Products from India – USA revises weighted-average dumping margins for M/s. Uttam Galva and all other exporters
  • Forged Steel Fittings from India – USA postpones preliminary determination in CVD investigation
  • Forged Steel Fluid End Blocks from India – USA initiates countervailing duty investigation and Less-Than-Fair-Value Investigation
  • Polyester Textured Yarn from India – USA issues Countervailing Duty Orders
  • Steel products – EU amends Implementing Regulation relating to safeguard duty
  • Welded Carbon Steel Standard Pipes and Tubes from India – USA issues Affirmative Administrative Review

WTO News

  • US-India steel dispute – Joint communication issued by India and United States

India Customs & Trade Policy Update

  • Social Welfare Surcharge payable in cash on imports under MEIS/SEIS – No recoveries for past cases where SWS paid through scrips
  • DTA supplies by SEZ – Registration under Steel Import Monitoring System when not required
  • Imports of refined bleached deodorized palm oil and palmolein made restricted
  • Gifts – Import prohibition clarified

Ratio decidendi

  • Anti-dumping duty – Normal value in exporting country when not to be rejected – CESTAT New Delhi
  • Exemption – Rules for import of goods at concessional rate of duty for manufacture of excisable goods, not procedural – Madras High Court
  • Valuation – Service charge paid for import, when not includible – CESTAT Hyderabad

New Nuggets

  • United States and China sign Phase-I of Trade Deal – Agreement also provides for bilateral evaluation and dispute resolution arrangement

January, 2020/Issue-103 January, 2020/Issue-103

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