01 January 0001

International Trade Amicus: November 2019


Panel Report in India-Export Related Measures – End of the road for export promotion programs?
by Divyashree Suri

WTO Panel has held that certain Indian export promotion schemes violate the provisions of the Agreement on Subsidies and Countervailing Measures. According to the Panel report, EOU scheme, EPCG scheme, SEZ scheme, Duty Free Imports for Exporters Scheme and MEI Scheme were contingent in law upon export performance because the subsidy programs expressly required export obligation as the criterion for availing the tax benefit, and thus were prohibited within the meaning of Article 3 of the ASCM. The Panel also disagreed with India’s argument that the eight-year period in Article 27.2(b) of the ASCM starts from the day of graduation from Annex VII. The article in this 101st issue of International Trade Amicus discusses the panel report. According to the author, the panel report has wide reaching effect on the Indian export sector and has generated serious concerns amongst Indian exporters who are using these export promotion programs to gain competitive advantage...

Trade Remedy News

  • Clear Float Glass from Pakistan, Saudi Arabia, UAE – Indian authorities issue final findings recommending continuation of definitive anti-dumping duty
  • Continuous Cast Copper Wire Rods from Indonesia, Malaysia, Thailand, Vietnam – Indian authorities issue final findings recommending imposition of definitive Countervailing duty
  • Fiberboards from Indonesia, Malaysia, Sri Lanka, Thailand, Vietnam – India initiates anti-subsidy investigation
  • Finished Carbon Steel Flanges from India – USA issues Preliminary Results of Antidumping Duty Administrative Review; 2017-2018
  • Forged steel fittings from India – USA initiates new antidumping duty and countervailing duty investigations
  • Frozen Warm-water Shrimp from India – USA issues final results of Anti-dumping duty Administrative Review; 2017-2018
  • Isopropyl Alcohol – India initiates Safeguard (Quantitative Restrictions) Investigation
  • Jute products from Bangladesh and Nepal – India imposes definitive anti-dumping duty on goods from specific entities for which new shipper review was concluded
  • Nylon Tyre Cord Fabric from China – India initiates Sunset Review of Anti-dumping duty
  • Oil Country Tubular Goods from India – USA issues final results and no shipments determination of Anti-dumping duty Administrative Review; 2017-2018
  • Polybutadiene Rubber from Korea RP – India initiates Bilateral Safeguard Investigation under India-Korea Comprehensive Economic Partnership Agreement (Bilateral Safeguard Measures) Rules, 2017
  • Polyester textured yarn from India – US DOC issues affirmative final determinations in the Anti-dumping duty and Countervailing duty investigations
  • Saturated Fatty Alcohols Indonesia, Malaysia and Thailand – India imposes definitive antidumping duty imposed on goods exported/produced by specific entity
  • Sodium Citrate from China – India initiates Sunset review of Anti-dumping investigation
  • Sodium Nitrite from China – Indian authorities recommend revision of anti-dumping duty
  • Stainless Steel Bar from India – USA issues final results of Administrative Review of the Anti-dumping duty order; 2017-2018
  • Styrene Butadiene Rubber from Korea RP – India initiates Anti-subsidy Investigation
  • Zinc coated (galvanised) steel from India – Australia to review dumping and subsidy investigation

WTO News

  • US Duties on Indian Steel Products - Compliance Panel Report issued
  • Indian export promotion schemes violate WTO provisions – India appeals against panel report
  • Trade restrictions by G20 countries remain high
  • US-China Anti-dumping dispute - Arbitrator issues decision
  • Safeguard investigations

India Customs & Trade Policy Update

  • Deemed export drawback can be claimed on All Industry Rate
  • Companies whose cases are referred to NCLT are required to inform of outstanding export obligations
  • Import of PET flakes prohibited
  • Export policy for onions revised

Ratio decidendi

  • Export benefit not deniable because of technical lapse - MEIS benefit available even when box relating to intention to claim benefit not checked in shipping bill – Kerala High Court
  • Valuation – Proviso to Rule 9(2) of Customs Valuation Rules can be invoked only when freight not ascertainable – CESTAT Ahmedabad
  • Classification of goods - Referring to chemical structure when not correct – CESTAT Mumbai
  • Mis-declaration by SEZ – Permission based on project report to be relied – CESTAT Ahmedabad
  • Cutting and slitting of imported running length tapes to produce Velcro is not ‘manufacture’ – No anti-dumping duty even if Velcro cleared into DTA – CESTAT Allahabad

November, 2019/Issue-101 November, 2019/Issue-101

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