Ans. An Application received by the Designated Authority is dealt with in the following manner:
A. Preliminary Screening:
The application is scrutinized to ensure that it is fully documented and provides sufficient evidence for initiating an investigation. If the evidence is not adequate, then a deficiency letter is issued. Unless the deficiencies are rectified, the submission made before the Authority can not be construed as an application pending before the Authority .
Designated Authority determines that the application has been made by or on behalf of the Domestic Industry. It also examines the accuracy and adequacy of the evidence provided in the application and when satisfied that there is sufficient evidence regarding dumping, injury and causal link, a public notice is issued initiating an investigation.
The Initiation notice will be issued normally within 5 days from the date of receipt of a properly documented application.
C. Access to Information:
The Authority provides access to the non-confidential evidence presented to it by various interested parties in the form of a public file, which is available for inspection to all interested parties on request after receipt of the responses.
D. Preliminary Findings:
The Designated Authority will proceed expeditiously with the conduct of the investigation and shall, in appropriate cases, make a preliminary finding containing the detailed information on the main reasons behind the determination. The preliminary finding will normally be made within 60-70 days from the date of initiation.
E. Provisional Duty:
A provisional duty not exceeding the margin of dumping may be imposed by the Central Government on the basis of the preliminary finding recorded by the Designated Authority.
The provisional duty can be imposed only after the expiry of 60 days from the date of initiation of investigation. The provisional duty will remain in force only for a period not exceeding 6 months, extendable to 9 months under certain circumstances.
F. Oral Evidence & Public Hearing:
Interested parties who participate in the investigations can request the Designated Authority for an opportunity to present the relevant information orally. However, such oral information shall be taken into consideration only when it is subsequently reproduced in writing. The Authority may grant oral hearing anytime during the course of the investigation.
Besides the above, the Authority holds a public hearing inviting all interested parties to make their submissions before it. All oral submissions made during the hearing need to be reproduced in writing for the Authority to take the same on board.
G. Disclosure of information:
Based on these submissions and evidence gathered during the investigation and verification thereof, the Authority will determine the basis of its final findings. However, the Designated Authority will inform all interested parties of the essential facts, which form the basis for its decision before the final finding is made.
H. Final Determination:
The interested parties submit their response to the disclosure and the final position of the Authority taken therein. The Authority examines these final submissions of the parties and comes out with final findings.
I. Time-limit for Investigation Process
Normal time allowed by the statute for conclusion of investigation and submission of final findings is one year from the date of initiation of the investigation. The above period may be extended by the Central Government by 6 months.
Ans. The anti dumping proceedings being quasi judicial in nature, the Designated Authority meticulously follows the norms of natural justice before making the final recommendation of duty.
The interested parties to the investigation are given adequate opportunity to represent their case at several stages of investigation.
The first opportunity is provided after the initiation of proceedings. The Authority duly considers the submissions of all interested parties in response to the initiation while giving its Preliminary findings.
After the imposition of provisional duty, the interested parties file their responses to the Preliminary findings and opportunity is provided to them to submit the facts and figures to the Authority at the stage of verification of their information if the same has been already filed in response to the initiation.
A formal Public hearing is held providing opportunities to all interested parties to make their submissions before it. All oral submissions made during the hearing need to be reproduced in writing for the Authority to take the same on board.
All these submissions of the different interested parties are given due consideration and on that basis the Authority issues a disclosure of essential facts which are proposed to form the basis of final findings.
The parties to the investigation are also given the final opportunity to respond to the disclosure and represent their case before the final findings are notified.
Ans. Yes, the Designated Authority recommends an interim relief which is provided to the affected domestic industry in the form of provisional anti dumping duty pending the finalisation of investigation proceedings. The provisional anti dumping duty is recommended by the Authority in its preliminary findings and the same is levied by the Ministry of Finance, Dept. of Revenue. This serves as immediate relief to the domestic industry against the injury caused to it by the dumping of goods. Statutorily, the provisional anti dumping duty can not be levied earlier than 60 days from the date of initiation of proceedings. The endeavor of the Designated Authority has been to recommend provisional duty immediately after the expiry of the mandatory period of 60 days. That is to say, in normal circumstances, the provisional anti dumping duty is recommended in a period of 60-70 days and levied in a period of about 3 months from the date of initiation of the proceedings.
Ans. Anti dumping duty can be levied on a retrospective basis in case it is found that –
- there is a history of dumping which caused injury or that the importer was, or should have been aware that the exporter practices dumping and that such dumping would cause injury; and
- the injury caused by massive dumping of an article imported in a relatively short time which in the light of the timing and the volume of imported article dumped and other circumstances is likely to seriously undermine the remedial effect of the anti dumping duty liable to be levied.
However, the anti dumping duty cannot be levied retrospectively beyond 90 days from the date of issue of Notification imposing duty.
Ans. While the Designated Authority (in the Department of Commerce) recommends the anti dumping duty, provisional or final, it is the Ministry of Finance, Dept. of Revenue which acts upon such recommendation within three months and imposes/levies such duty.
- the final duty is less than the provisional duty;
- the final duty is more than the provisional duty;
Ans. Anti dumping duty is recommended and levied at two stages, provisional and final. If the final duty levied is less than the provisional duty which has already been levied and collected, the differential amount already collected as provisional duty shall be refunded.
If the final duty imposed is more than the provisional duty already imposed and collected, the difference shall not be collected.
If the provisional duty is withdrawn based on the final findings of the Designated Authority, than the provisional duty already collected shall be refunded.
The Designated Authority notifies its recommendations with respect to Initiation / Preliminary Findings/Final Findings etc. through Government of India, Gazette.
Press Information Bureau, Ministry of Commerce & Industry also issues a Press Release on the subject from to time.
Also NIC, Ministry of Commerce and Industry makes available the details with respect to recommendations of the Designated Authority on its web-site http://commin.nic.in/doc.” target=”_BLANK” title=”External site that opens in a new window.”/p>
On receipt of recommendations from the Designated Authority, the Central Government (i.e. Ministry of Finance, Dept. of Revenue) notifies, the imposition of Anti-dumping Duties through Government of India, Gazette.
Ans. The law provides that an order of determination of existence degree and effect of dumping is appealable before the Customs, Excise and Gold (Control) Appellate Tribunal (CEGAT). However, as per the judicial view, only the final findings/order of the Designated Authority/Ministry of Finance can be appealed against before the CEGAT.
No appeal will lie against the Preliminary findings of the Authority and the provisional duty imposed on the basis thereof. The Appeal to the CEGAT should be filed within 90 days.
Ans. The Designated Authority may suspend or terminate the investigation in the following cases :
- if there is a request in writing from the domestic industry at whose instance the investigation was initiated.
- when there is no sufficient evidence of dumping or injury.
- if the margin of dumping is less than 2% of the export price.
- the volume of dumped imports from a country is less than 3% of the total imports of the like article into India or the volume of dumped imports collectively from all such countries is less than 7% of the total imports.
- If injury is negligible.
Ans. The purpose of anti dumping duties, in general, is to eliminate dumping which is causing injury to the domestic industry and to re-establish a situation of open and fair competition in the Indian market, which is in the general interest of the country.
The imposition of anti dumping duty might affect the price levels of the products manufactured using the subject goods. However, fair competition in the Indian market will not be reduced by the anti dumping measures.
On the contrary, imposition of anti dumping duty would remove the unfair advantages gained by the overseas exporters through their dumping practices, would prevent the decline of the domestic industry and would create conditions for fair trade.
The imposition of anti dumping measures would not restrict imports from the subject country in any way and therefore, would not hinder the consumers’ access to the imported goods.
Ans. The anti dumping duty shall remain in force for a period of five years from the date of imposition of duty. However, such duty can be reviewed by the Designated Authority anytime before the expiry of the said period.
The Authority has the power to review the need for continuation of anti dumping duty. Such a review can be done on the basis of a request received from an interested party in view of the changed circumstances.
The review may result in the withdrawal of the duty or in the variation of the duty level depending upon the new circumstances. Generally speaking, an interested party can file a request for review only after a year from the imposition of duty.
A review shall follow the same procedure as prescribed for investigation of a fresh case to the extent applicable.
Ans. The levy of anti dumping duty is both exporter specific and country specific.
It extends to the imports from only those countries in respect of which dumping has been alleged and the complaint has been filed and duty recommended.
Such duty will not apply to the imports from other countries in respect of which the domestic industry has not alleged dumping.
However, the anti dumping duty is not payable on imports against the Advance License scheme or on imports by the 100% EOUs /EPZ units, even if such imports are from the countries under complaint.
Ans. GATT agreement as well as the Indian laws provide that the injured domestic industry is permitted to file for relief under the anti-dumping as well as countervailing duties. However, no articles shall be subjected to both countervailing and anti-dumping duties to compensate for the same situation of dumping or export subsidization.
III. Miscellaneous Matters
Ans. India is currently in the process of phasing out its quantitative restrictions regime in relation to imports. With removal of licensing restrictions on imports, there has been a tendency on the part of several trading partners of India to resort to dumping of their goods of different kinds into India, thereby creating a situation of unfair competition in the domestic market whereby the domestic industry has suffered injury.
To address such a scenario of unfair trade, and to provide the requisite remedy to the domestic industry against injury caused by such dumping, the anti dumping measures have assumed a great deal of significance.
The anti dumping measures do not aim at providing protection to the domestic industry per se. These are only remedial measures for removal of injury to the domestic industry caused by the dumping of goods. The object behind such measures is to re-establish fair competition and to provide the domestic industry a level playing field.
The paramount objective of the multi-lateral trade regime of WTO is to establish free and fair international trade. With removal of QRs, India has moved towards the regime of free trade. At the same time, anti dumping measures can be applied, where warranted, in the interest of fair trade.