Article

Navigating the European Union’s Green Trade Frontier: Decoding EU-CBAM for Indian exporters

By Aayush Rastogi and Nikita Chauhan

The article in this issue of International Trade Amicus discusses the European Union’s Carbon Border Adjustment Mechanism (CBAM), which, as per EU’s claims, has been designed to put a fair price on the carbon emitted while manufacturing the goods being imported into the EU. Covering CBAM’s genesis, scope and coverage, timelines and phases, the article elaborately covers compliances required by the exporters to the EU and accordingly various checkpoints for companies. According to the authors, it is important that Indian manufacturers exporting CBAM goods to the EU efficiently produce the required data if they want to maintain access to the EU market. They also highlight that EU policymakers are expected to add new products, such as plastics and chemicals, and include all products covered under the EU Emissions Trading System by 2030. However, they believe that this can be a business opportunity for companies to align their carbon footprint monitoring with international practices, get ahead of industry peers and attract customers by demonstrating their strong commitment to sustainability and climate change related legal compliances.

Trade News Remedy

• 2,4-Dichlorophenoxyacetic Acid from India - USA issues affirmative determination of material injury due to sale at less than fare value and subsidization
• Aluminum Extrusions from India - USA issues preliminary affirmative determination of sale at less than fare value between 1 October 2022 to 30 September 2023
• Barium Chloride from India - USA initiates administrative review of countervailing duty order for period 17 June 2022 till 31 December 2023
• Brass Rod from India - USA schedules final phase of the anti-dumping and countervailing duty investigations
• Carbon and Alloy Steel Threaded Rod from India - USA issues preliminary finding of sale at prices below normal value from 1 April 2022 till 31 March 2023
• Ceramic Tile from India - USA initiates countervailing duty and less-than-fare-value investigations
• Chlorinated Polyvinyl Chloride from China PR and Korea RP - India’s DGTR recommends continuation of anti-dumping duty after sunset review
• Common Alloy Aluminum Sheet from India - USA issues preliminary determination that countervailable subsidies were provided during 1 January 2022 and 31 December 2022
• Epoxy Resins from India - USA issues affirmative determination of material injury due to sale at less than fare value and subsidization
• Glycine from India - USA initiates sunset reviews of anti-dumping and countervailing duties
• Granular Polytetrafluoroethylene Resin from India - USA initiates administrative reviews of anti-dumping duty order for period 1 March 2023 till 29 February 2024 and for CVD order for period 1 January 2023 till 31 December 2023
• High Chrome Cast Iron Grinding Media from India - USA initiates anti-dumping and countervailing duties investigations
• Large Diameter Welded Pipe from India - USA issues affirmative sunset review of countervailing duty order
• Low Ash Metallurgical Coke - India’s DGTR recommends Safeguard Quantitative restriction
• New Pneumatic Off-The-Road Tyres from India - USA initiates administrative reviews of anti-dumping duty order for period 1 March 2023 till 29 February 2024 and for CVD order for period 1 January 2023 till 31 December 2023
• Optical fibre cables from India - EU initiates anti-subsidy investigation
• Organic Soybean Meal from India - USA issues preliminary determination of provision of countervailable subsidies from 3 September 2021 till 31 December 2022
• Paper Shopping Bags from India - USA issues affirmative determination of provision of countervailing subsidies between 1 January 2022 till 31 December 2022 and affirmative determination of sale at less than fare value between 1 April 2022 till 31 March 2023
• Pentaerythritol from China PR, Saudi Arabia and Taiwan - India imposes anti-dumping duty
• Saccharin in all its forms from China PR - India extends countervailing duty till 28 February 2025
• Silicomanganese from India - USA initiates sunset review of anti-dumping duty
• Stainless Steel Flanges from India - USA partially revokes anti-dumping duty and countervailing duty orders after changed-circumstances review
• Trichloro Isocyanuric Acid from China PR and Japan - India’s DGTR recommends provisional anti-dumping duty

India Customs & Trade Policy Update

• India-Korea CEPA - Electronic Certificate of Origin is now acceptable
• India-UAE CEPA - Additional security features issued by UAE in Certificate of Origin
• Bengal Gram (Desi Chana) and Yellow Peas - BCD exemption
• Onions exports allowed with USD 550/MT MEP and 40% export duty
• Ortho-phosphoric Acid imported for manufacture of fertilisers exempted from following BIS standard for 90 days

Ratio decidendi

• Anti-dumping duty - Central Government cannot revoke anti-dumping duty without following prescribed procedure which is not directory - Gujarat High Court
• Safeguard duty on solar cells and modules - Notification dated 30 July 2018 is valid though effective from 10 September 2018 - Madras High Court
• India-Malaysia FTA - Certificate of Origin by Malaysian Government cannot be disputed without complying with Rule 9 - CESTAT Ahmedabad
• Classification under Chapter 39 - Sub-heading Note is relevant for choosing sub-heading within a Heading and not for change of classification from one Heading to another - CESTAT Ahmedabad
• Plastic insulated boxes for carrying vaccines and blood are classifiable under Customs Heading 9018 - CESTAT Ahmedabad
• Coconut powder having 46.8% oil content is classifiable under Customs Heading 2306 - CESTAT Bengaluru
• Sweet Pearl P200/Maltitol crystals being polyol compound are classifiable under Customs Heading 2905 - CESTAT Chennai