International Trade Amicus: July 2022

Article

Opening market access in government procurement through India-UAE FTA

By Aayush Rastogi and Ashutosh Arvind Kumar

The article in this issue of International Trade Amicus discusses the chapter on government procurement in the India-UAE Comprehensive Economic Partnership Agreement, which is India’s first such market access agreement (i.e., with government procurement chapter) with any country. Discussing the features of the chapter, the article analyses the benefits of inclusion of such chapter. The authors also note how the chapter safeguards the interest of Indian producers and suppliers, particularly those in the MSME sector. Further, discussing how this allows India to take a more targeted approach on what sectors it wants to open on non-discriminatory basis and to whom they open these sectors, the authors also point out that since India has incorporated government procurement in this FTA, future FTA negotiations, and even existing one, for example, with Japan, will also be impacted. According to the authors, the impact of this facilitation of government procurement on India’s economy and future negotiations will be keenly watched...

Trade News Remedy

  • Aluminium foil of thickness ranging from 5.5 micron to 80 micron from China PR – Indian Finance Ministry decides not to impose anti-dumping duty as recommended by DGTR
  • Clear Float Glass from Bangladesh and Thailand – Indian authority (DGTR) recommends imposition of anti-dumping duty
  • Electrogalvanized Steel from Korea RP, Japan and Singapore – DGTR recommends imposition of definitive anti-dumping duty
  • Fine Denier Polyester Staple Fiber from India – USA determines that countervailable subsidies were provided above de minimis during 1 January 2020 till 31 December 2020
  • Frozen Warmwater Shrimp from India – USA issues final results of administrative review
  • Glycine from India – USA issues affirmative preliminary determination of countervailing subsidies
  • High Tenacity Polyester Yarn from China PR – India initiates anti-circumvention investigation for anti-dumping duty
  • Hydrogen Peroxide from Bangladesh and Thailand – Indian Finance Ministry decides not to impose ADD as recommended by DGTR
  • Polytetrafluoroethylene (PTFE) from China PR – Indian Finance Ministry decides not to impose anti-dumping duty as recommended by DGTR
  • Quartz Surface Products from India – USA issues preliminary result of anti-dumping administrative review
  • Saccharin from Thailand – DGTR recommends imposition of countervailing duty, as imposable on goods from China PR, on goods from Thailand
  • Saturated Fatty Alcohols from Indonesia, Malaysia and Thailand – India amends anti-dumping rates (rate prescribed for a specific producer)
  • Stainless steel flanges from India – USA issues affirmative preliminary determination of countervailable subsidies
  • Styrene Butadiene Rubber from EU, Korea RP and Thailand – DGTR recommends continuation of anti-dumping duty after sunset review
  • Sulfanilic Acid from India – USA terminates sunset reviews of anti-dumping and countervailing duty
  • Ursodeoxycholic Acid (UDCA) from China PR and Korea RP – DGTR recommends imposition of provisional anti-dumping duty

WTO NEWS

  • G20 economies show restraint in use of trade restrictions
  • Arbitration decision in US-Canada paper dispute circulated
  • Tunisia launches safeguard investigation on iron or non-alloy steel wires for manufacture of furniture springs

India Customs & Trade Policy Update

  • IGST exemption withdrawn on imports by Research Institutions, Government departments, Laboratories, IIT and Regional Cancer Institutes
  • Defence imports – Exemption extended to imports by ‘any entity’
  • Steel Import Monitoring System (SIMS) – Advance registration abolished
  • Paper Import Monitoring System (PIMS) clarified
  • Open Cells for use in manufacture of LCD and LED TV panels – Exemption during 1 January 2022 till 12 July 2022 clarified
  • Wheat flour – Export restrictions imposed
  • Potato imports from Bhutan allowed without licence till 30 June 2023
  • Motor gasoline and gas oil, including oils obtained from gas oil – Export conditions introduced
  • Lentils (masur) – Exemption from Agriculture Infrastructure Development Cess extended till 31 March 2023
  • Cotton not carded or combed – Exemption from BCD and AIDC extended till 31 October 2022

Ratio decidendi

  • Appeal to High Court against Tribunal order reversing DA’s decision of non-continuation of anti-dumping duty after sunset review, maintainable – Delhi High Court
  • Standardised vanilla extract is classifiable under Heading 1302 and not as extracted oleoresins under Heading 3301 – Court of Justice of the European Union
  • Vehicle-mounted computers, tablet computers and mobile computers are classifiable under Heading 8471 – Customs AAR
  • Populated Printed Circuit Boards for DWDM Equipment-Photonic Service Switch are classifiable under TI 8517 70 10 – CESTAT Mumbai
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