International Trade Amicus: September 2022

Article

Powers of Central Government in imposing trade remedial measures: Quasi-Judicial or Legislative?

By Utkarsh Khandelwal

Recently the Gujarat High Court in the case Real Strips v. Union of India had an occasion to decide the nature of powers exercised by the Ministry of Finance in deciding the imposition of countervailing duty. The article in this issue of International Trade Amicus critically analyses the judgement of the High Court in the light of recent controversy surrounding the issue. The author analyses the issue on two metrics. Firstly, for the purposes of review provision in Section 9C of the Customs Tariff Act, 1975, what is the interpretation of the term ‘Order of determination’? and secondly, whether the presence of a provision for appeal in Section 9C against such order of determination would make the levy of duty by the Government a quasi-judicial act? Citing various case law, the author concludes that it can be argued that the function of Central Government to levy or revoke the AD duty / CVD is a legislative act pursuant to a quasi-judicial determination by the DGTR. He states that an authoritative ruling by the Supreme Court would be the most instrumental step towards resolution of the present discourse...

Trade News Remedy

  • Aluminium Alloy Road Wheels (ARWs) from China PR, Korea and Thailand – Indian authority (DGTR) recommends enhancing quantum of anti-dumping duty on imports from specified entities from China PR
  • Ammonium Nitrate from Russia, Georgia and Iran – Indian Finance Ministry decides not to impose anti-dumping duty as recommended by DGTR
  • Barium Chloride from India – USA schedules final phase of countervailing duty and anti-dumping duty investigations
  • Carbon and Alloy Steel Threaded Rod from India – USA issues affirmative finding of sale below normal value during 25 September 2019 and 31 March 2021
  • Cold-Drawn Mechanical Tubing of Carbon and Alloy Steel from India – USA issues affirmative finding of countervailable subsidies during 1 January 2020 and 31 December 2020
  • Ductile pipes (tubes and pipes of ductile cast iron) from India – USA initiates partial interim review of the anti-dumping measures
  • Finished Carbon Steel Flanges from India – USA issues affirmative sunset review of the anti-dumping duty and countervailing orders
  • Finished Carbon Steel Flanges from India – USA issues preliminary affirmative results of anti-dumping duty administrative review during 1 August 2020 and 31 July 2021
  • Finished Carbon Steel Flanges from India – USA issues preliminary affirmative findings of countervailing subsidies in administrative review for period1 January 2020 till 31 December 2022
  • Frozen warmwater shrimp from India – USA’s Commission determines that it will proceed with full sunset review of anti-dumping duty
  • Hydrogen Peroxide from Bangladesh – India’s DGTR rejects application for individual duty in anti-dumping duty new shipper review
  • Jute products from Bangladesh and Nepal – India extends anti-dumping duty till 31 December 2022
  • Monoisopropylamine (MIPA) from China PR – India initiates sunset review of anti-dumping duty
  • Oil country tubular goods from India – Canada notifies re-investigation of the normal values and export prices in respect of anti-dumping duty
  • PVC suspension resins with residual Vinyl Chloride Monomer above 2PPM – India initiates Safeguard (Quantitative Restrictions) investigation
  • Radial tyres, including tubeless tyres having nominal rim dia code above 16" from China PR – India’s DGTR recommends continuation of anti-dumping for three more years, after sunset review
  • Stainless Steel bar from India – USA issues final results of affirmative administrative review for period 1 February 2020 till 31 January 2021
  • Stainless-Steel Seamless Tubes and Pipes from China PR – India’s DGTR recommends imposition of definitive anti-dumping duty for five years
  • Toluene Di-isocyanate from China PR, Korea RP and Japan – India continues anti-dumping duty after sunset review
  • Welded carbon steel standard pipes and tubes from India – USA issues preliminary negative determinations of circumvention of the anti-dumping order

WTO NEWS

  • Argentina challenges Peru’s trade-remedy measures on biodiesel imports
  • Agency heads call for urgent action to address global food security crisis

India Customs & Trade Policy Update

  • Settlement of exports and imports in Indian Rupees
  • Rice exports – Broken rice export prohibited – Export duty imposed on specified items
  • PET flakes import relaxed
  • Vegetable oils – Reduced customs duties, including AIDC, to be effective till 31 March 2023

Ratio decidendi

  • Countervailing duty cannot be revoked before completion of sunset review – Gujarat High Court
  • Appeal to CESTAT maintainable against Central Government’s office memorandum not to impose anti-dumping duty even in case of affirmative finding by DG – CESTAT Anti-dumping Bench
  • Air conditioner kit and parts of heat exchange unit – Classification – AAR Customs
  • Wireless charging pad with AC adapter and Lightning audio & charger rockstar – Classification – United Kingdom’s Upper Tribunal (Tax and Chancery Chamber)
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