Article

Implementation of Significant Distortions Methodology by EU in original anti-dumping investigations – Who’s next after China?

By Vikrant Nehra

Significant distortions methodology on imports from China as per Article 2(6a) of the EU’s amended Basic Regulation has been applied by the European Union in three original anti-dumping investigations. Analysing these cases, the article summarises that while individual producers/exporters continue to register their participation, there is no opposition/response from China during the investigations to avoid application of significant distortion methodology and as a result, exports from China face the same treatment as that of a non-market economy country. Further, taking note of the fact that recently the work of the WTO Panel established to examine the consistency of EU’s erstwhile provision regarding non-market economy treatment to China was also allowed to lapse and there is no renewed challenge by China before the WTO against the methodology, the author believes that China is now reserved about its opposition on the issue of continued non-market economy and similar discriminatory treatment to its exports by the EU. According to the author, it requires to be seen if the application of this methodology will be extended to other countries as well...

Trade Remedy News

• Aluminum Wire/Wire Rods above 7 mm dia from Malaysia – India initiates anti-subsidy/ countervailing duty investigation
• Commodity Matchbooks from India – USA’s authorities issue affirmative final results of second expedited sunset review of Countervailing Duty Order
• Fluoroelastomers (FKM) from China – India extends anti-dumping duty till 27-10-2020
• Forged Steel Fluid End Blocks from India – USA’s authorities issue preliminary negative determination of sales at less than fair value
• Oil country tubular goods from India – Canada issues expiry review finding of continuation or resumption of dumping
• Phenol from South Africa – India extends anti-dumping duty till 09-01-2021
• Phthalic Anhydride from Korea RP – India imposes provisional bilateral safeguard duty by increasing rate of duty of customs under the India-Korea Comprehensive Economic Partnership Agreement
• Polybutadiene Rubber from Korea RP – India imposes provisional bilateral safeguard duty by increasing the rate of duty of customs under the India-Korea Comprehensive Economic Partnership Agreement
• Pre-stressed Concrete Steel Wire Strand from India – USA’s authorities issue affirmative final results of expedited sunset review of Countervailing Duty Order
• Solar Cells whether or not assembled in modules or panels – India authorities issue final findings of the review of safeguard duties investigation recommending continuation of measures for one year
• Steel and Fibre Glass Measuring Tapes and their parts and components from China – India continues definitive anti-dumping duty after sunset review
• Viscose Rayon Filament Yarn above 60 deniers from China – India initiates anti-subsidy/ countervailing duty investigation

WTO News

• Indian tariffs on ICT products – Panel established at European Union’s request
• India-USA poultry dispute – Arbitrator’s decision again postponed, this time till 21-01-2021
• European Union’s ‘Cost Adjustment Methodology’ held inconsistent with WTO provisions
• Peru initiates complaint against Brazil’s PET duties and tax treatment of imports
• Columbian duties on fries from Belgium, Germany and Netherlands – Panel established at EU’s request

India Customs and Trade Policy Update

• Contactless Customs – Turant Suvidha Kendra and other initiatives by Customs
• Sunset review of countervailing duty – DGTR issues guidelines and procedure for applications
• All Industry Rates of Duty Drawback – Changes effective from 15-07-2020
• Personal protection equipment (PPE) and masks – Export Policy revised
• Power tillers and components – Import Policy revised to ‘restricted’
• Cut flowers – Import policy revised

Ratio decidendi

• Anti-dumping duty – Effect of high percentage of price underselling and dumping margin in exports to other countries – CESTAT sets aside DGTR’s recommendation of non-continuation of anti-dumping duty – CESTAT Anti-dumping Bench
• Valuation – Import prices as per international journals on date of contract between related parties, acceptable – CESTAT Ahmedabad