Article

Particular Market Situation in anti-dumping cases: A tool to address distortions

By Gopakrushna Das

Article 2.2 of the WTO’s Anti-dumping Agreement allows an investigating authority to reject the domestic selling prices for calculating the normal value in cases where, because of a ‘Particular Market Situation’ (‘PMS’), such domestic sales do not permit a proper comparison with the export price. So, PMS is a situation existing in the market of a product in the exporting country which is ‘particular’ or ‘distinct’ to the product in a manner that it can potentially distort its domestic selling prices and render them unfit for comparison with the export prices. Observing that the law is silent regarding the appropriate approach to determine the existence of a PMS, the article discusses some of the recent cases wherein the Indian investigating authority undertook a PMS analysis. According to the author, PMS has become a new tool in the hands of the domestic industry to allege distortion in costs and domestic selling prices in the exporting country however, as a long as it does not create hindrance in a proper comparison between domestic selling price and export price, its impact is neutral. The article concludes by observing that it is high time that Indian Authority also issues some guidelines for determining existence of PMS...

Trade Remedy News

• Decor Paper from China PR – Indian DGTR recommends substitution of anti-dumping duty table in respect of imports from M/s. Hangzhou Huawang New Material Technology Co. Ltd., China
• Fluoro backsheet from China PR – Indian DGTR recommends imposition of anti-dumping duty
• Jute products from Bangladesh and Nepal – India extends anti-dumping duty till 31 August 2022
• Low Density polyethylene (LDPE) from Saudi Arabia, Singapore, Thailand and USA – Indian DGTR recommends imposition of anti-dumping duty
• New/unused pneumatic radial tyres for buses and trucks from China PR – India initiates sunset review of anti-dumping duty
• Open mesh fabrics of glass fibres from India – European Union initiates new exporter review of anti-dumping duty
• Polyethylene Terephthalate (PET) Resin from India – USA continues countervailing and anti-dumping duties after sunset reviews
• Raw honey from India – USA issues final determination of sales at less than fair value
• Rubber chemicals – TDQ from China PR, EU and Russia; PVI from China PR; CBS from China PR – Indian DGTR recommends imposition of anti-dumping duty
• Sodium Nitrite from India – USA issues scheduling of the final phase of countervailing duty and anti-dumping duty investigations
• Sulfanilic Acid from India – USA initiates expiry reviews of anti-dumping and countervailing duty

WTO News

• Costa Rican import restrictions on Mexican avocados violate SPS Agreement

India Customs & Trade Policy Update

• Mauritius imports under CECPA – Customs duty further reduced
• Cotton, not carded or combed – Basic Customs Duty and Agriculture Infrastructure and Development Cess exempted
• Urea imports allowed through Indian Potash Limited till 31 March 2023
• Tur and Urad importable freely till 31 March 2023
• Exemption from IGST and Compensation Cess for imports under advance authorizations or EPCG or by an EOU extended till 30 June 2022
• EPCG authorisation – Amendments made to reduce compliance burden and enhance ease of doing business

Ratio decidendi

• Anti-dumping duty – Discretion to include importers in the scope of ‘domestic industry’ – Gauhati High Court
• Anti-dumping duty – Determination of non-injurious price in INR and not USD – Gauhati High Court