International Trade Amicus: March 2020

Article

Circumvention provisions relating to anti-dumping duty – Analysis of recent amendments

By Shubhi Khare

The article in this issue of International Trade Amicus analysis recent amendments made in the Customs Tariff (Identification, Assessment and Collection of Antidumping Duty on Dumped Articles and for Determination of Injury) Rules, 1995 in respect of circumvention provisions relating to anti-dumping duty. Circumvention is a mechanism used by companies to ‘avoid’ duties which are targeted against unfair imports. Such practices make the imposition of trade remedy measures redundant and allow the influx of unfair imports into the country. Analysing the revised definition of circumvention, the author notes that when there is an anti-circumvention investigation, the export price would be compared with the previously established normal value in an earlier investigation. According to the author, there may exist possibility that the earlier normal value becomes redundant for the purposes of determining the dumping margin. Further, noticing that the Authority has now been given ample discretion to determine circumvention when effect of ADD is undermined by change in trade practice, the article states that the amendment has effectively aligned provision of circumvention in the Customs Tariff Act with the ADD Rules governing circumvention. Discussing various other amendments, the author is of the view that the amendments have broadened the scope of pattern of trade or circumvention analysis...

Trade Remedy News

  • Aluminium and Zinc coated flat products from China PR, Vietnam and Korea RP – Indian authorities recommend definitive anti-dumping duty
  • Carbazole Violet Pigment 23 from India – USA rescinds anti-dumping duty administrative review; 2018-2019
  • Chlorinated Polyvinyl Chloride (CPVC) Resin from China PR and Korea RP – India imposes definitive anti-dumping duty for a period of five years
  • Cold-drawn mechanical tubing of carbon and alloy steel from India – USA issues preliminary results of countervailing duty administrative review, 2017-2018
  • Commodity matchbox from India – USA initiates ADD and CVD sunset reviews
  • Electronic calculators from Malaysia – Indian authorities recommend definitive anti-dumping duty
  • Flexible slabstock polyol from Singapore – Indian authorities recommend continuation of anti-dumping duty consequent to sunset review
  • Frozen warmwater shrimp from India – USA issues preliminary results of anti-dumping duty administrative review; 2018-2019
  • Graphite electrode systems from India – USA initiates partial interim review of anti-dumping and countervailing duty
  • Nylon multi-filament yarn from China PR, Korea RP, Taiwan and Thailand – Indian authorities recommend definitive anti-dumping duty
  • Oil country tubular goods from India – Canada initiates expiry review of anti-dumping duty
  • Oil country tubular goods from India – USA issues affirmative sunset review of anti-dumping duty
  • Phenol from Thailand and USA – India initiates anti-dumping duty investigation
  • Plain medium density fibre board from China PR, Malaysia, Thailand and Sri Lanka – India initiates second sunset review investigation
  • Polyethylene Terephthalate film, sheet and strip from India – USA issues final results of countervailing duty administrative review; 2017
  • Prestressed concrete steel wire strand from India – USA initiates anti-dumping duty and countervailing duty sunset reviews
  • Refined bleached deodorised palm olein and refined bleached deodorised palm oil from Malaysia – Indian authorities recommend Safeguard duty under India-Malaysia Comprehensive Economic Cooperation Agreement (Bilateral Safeguard Measures) Rules, 2017
  • Sheet glass from China PR – India extends anti-dumping duty for 5 years
  • Soda ash from Turkey – India initiates anti-subsidy/ countervailing duty investigation
  • Solar cells whether or not assembled in modules or panels – India initiates review investigation for continued imposition of safeguard duty
  • Stainless steel bar from India – USA issues preliminary results of anti-dumping duty administrative review; and rescission of review in part; 2018-2019
  • Tubes and pipes of ductile cast iron from India – EU terminates partial interim review of countervailing duty

WTO News

  • EU’s Safeguard measures on steel products – Turkey initiates dispute
  • COVID-19 effect on 12th Ministerial Conference – Media and non-governmental organisations’ accreditation suspended
  • Safeguard measures by Ukraine and Philippines

India Customs and Trade Policy Update

  • Remission of Duties and Taxes on Exported Products – Union Cabinet approves scheme
  • COVID-19 effect – Reliefs under Customs law
  • Export restrictions for specified Active Pharmaceutical Ingredients and formulations made from these APIs
  • Export prohibitions revised for certain personal protection equipment and certain medical equipment
  • All-India implementation of automated clearance of Bills of Entry
  • Relief in average export obligation under EPCG Scheme to exporters of specified sectors
  • Mandatory RFID sealing for goods transported for deposit or removal from warehouse, postponed

Ratio decidendi

  • Country of origin – Production of solar modules whether only presentational change from solar cells – Question referred to CJEU – UK’s Upper Tribunal (Tax and Chancery Chamber)
  • Valuation – Sponsorship and endorsement expenses borne by importer when not includible – CESTAT New Delhi
  • Valuation – Buying commission and notional high sea sales charges – CESTAT Ahmedabad
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