Article

Navigating the EU Deforestation Regulations: Scope, coverage and impact on Indian exporters

By Aayush Rastogi

The article in this issue of International Trade Amicus discusses the recently notified European Union Deforestation Regulation ('EUDR’), which is a set of comprehensive regulations targeting the imports and domestic production of products associated with deforestation. Observing that these regulations will also have far-reaching implications for Indian producers and exporters engaged in the trading of commodities like coffee, chocolates, soy, and wooden furniture, the article provides a brief overview of the EUDR, what it entails, and explores its impact on Indian exports to the European Union. It also elaborately discusses the three conditions - deforestation-free, produced in accordance with the relevant legislations of the producing country, and Due diligence statement, which are required to complied. The article also notes that while the EU member country can obligate the operator trader to take certain corrective actions, in case of non-compliance, certain penalties including monetary fines, confiscation, prohibition, etc., is also not ruled out. According to the author, though this would increase the compliance cost of Indian exporters, it can present an opportunity for those Indian exporters who are able to comply.

Trade News Remedy

• Acetone from EU, Singapore, South Africa and USA - India initiates mid-term review of anti-dumping duty
• Ceramic sinks, wash basins, wash basin pedestals, baths, bidets, water closet pans, flushing cisterns, urinals and similar sanitary fixtures, from India - Cooperation Council for the Arab States of the Gulf (GCC) initiate anti-dumping investigation
• Cold-drawn mechanical tubing of carbon and alloy Steel from India - USA issues determination that countervailable subsidies were provided to producers and exporters during 1 January 2021 to 31 December 2021
• Cut to length carbon quality steel plate from India - USA continues anti-dumping duty and countervailing duty after sunset review
• Ethylene Vinyl Acetate (EVA) Sheet for Solar Module from China PR - India initiates sunset review of anti-dumping duty
• Fasteners from China PR - India initiates anti-dumping investigation
• Flat base steel wheels of nominal diameter from 16” to 20” from China PR - India continues anti-dumping duty after sunset review
• Frozen warmwater shrimp from India - USA issues determination of sales at less than normal value during 1 February 2021 to 31 January 2022
• Manual saw blades straight fast steel from India - Argentina issues final determination of anti-dumping investigations
• Mattresses from India - USA issues determination of reasonable indication of material injury
• Polyester Textured Yarn from India - Turkey initiates anti-dumping investigation
• Stainless steel bar from India - USA initiates sunset review of anti-dumping duty
• Stainless steel flanges from India - USA issues affirmative result in sunset review of anti-dumping duty
• Steel products from India - UK initiates safeguard extension review
• Sulphur Black from China PR - India initiates anti-dumping investigation
• Synthetic grade Zeolite 4A (Detergent grade) from China PR - India’s DGTR recommends continuation of anti-dumping duty after sunset review
• Telescopic channel drawer slider from China PR - India initiates anti-dumping investigation
• Textured tempered coated and uncoated glass from Malaysia - India initiates sunset review of anti-dumping duty
• Unframed glass mirror from China PR - India initiates anti-dumping investigation
• Vacuum insulated flask or other vessels of stainless steel from China PR - India initiates anti-dumping investigation
• Vulcanized rubber thread and cord from India - Turkey initiates anti-dumping investigation

WTO NEWS

• Ukraine disputes measures by Poland, Hungary and Slovak Republic, restricting import of certain agricultural goods from Ukraine
• China appeals panel report regarding Chinese duties on certain US products

India Customs & Trade Policy Update

• Chickpeas, lentils, almonds, apples, etc., imported from USA - Basic customs duty reverted to MFN rate
• Project imports - BCD exemption to specified project imports extended till 30 September 2025
• RoDTEP scheme extended for exports from 1 October 2023 till 30 June 2024
• Pre-import condition under Advance Authorisation - Implementation from 13 October 2017 till 9 January 2019 clarified
• Rice - Export of specified quantities of non-basmati white rice permitted to UAE, Bhutan, Mauritius, and Singapore
• Isopropyl Alcohol import by SEZ unit - Country-wise quantitative restrictions not applicable

Ratio decidendi

• Refund when definitive anti-dumping duty revoked by simultaneous notification after a mid-term review - Applicability of revocation for past period - CESTAT Ahmedabad
• Universal Joint Parts for Transmission Shafts for further use in motor vehicles are classifiable under Heading 8483 and not under Heading 8708 - CESTAT Delhi
• Nikon camera Model No. N2120 is principally a still image digital camera though has unlimited video recording time - Classifiable under TI 8525 89 00 and covered under S. No. 502 of Notification No. 50/2017-Cus. - Customs AAR
• 'Interactive large format display’ is classifiable under Customs TI 8471 4190 (ADP machine) and not under Heading 8528 - Customs AAR