Anti Dumping Cases in India

8/4/2019 Anti Dumping Cases in India

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ANTI DUMPINGCASES IN INDIA

Presented By:

Manmeet Singh Jaj

Virpal Kaur

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Dumping

Dumping is said to have taken

place when an exporter sells aproduct to a country at a price

less than the price prevailing in

its own domestic market.

2

Normal Value in the

domestic market of

Exporting Country

Export Price


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Measuring Normal Price

The price in the exporters

domestic market, or The price charged by the exporter

in another country, or

Production costs plus other

expenses and normal profitmargins(in country of origin).

Under Section 9A (1)(c) of Anti Dumping Rules

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Export Price

Price paid or payable for the goods

by the first independent buyer

Or

May be constructed on the basis of

the price at which the imported

articles are first resold to anindependent Buyer(in case of

association)

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Domestic Industry Of

The Importer

1. Producers of like articles as a whole

or those producers whose output is amajor proportion of total domestic

production.

2. The following are excluded

Importers Those related to importers or

exporters

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Like Products

A product is identical - alike inall respects

OR

A product that has closely

resembling characteristics

Rule 2(d) of the Anti Dumping Rules

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Comparing Normal Price

& Export Price

1. Normal Value- Export Price

(transaction to transaction basis)2. Weighted Avg. NV with Weighted

Avg. EP

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Factors Affecting

Comparison

* Physical characteristics

* Levels of trade

* Quantities

*Taxation

* Conditions and terms of sale8


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What Dumping Can

Result In

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Dumping Injury

Loss of Sales

Reduced Profits

Loss of market share

Reduced returns on investments

Decline in Productivity

Under utilization of capacity


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Injury Determination

1. Volume Effect

a significant increase in the volume

of dumped imports Absolute

Relative

2. Price Effect

Depression

Under Cutting

Suppression

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Under Rule 11, Annexure-II


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Remedial Action

Restrict Dumping

or

Enter into a Price Undertaking11


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Price Undertaking

Investigation is terminated if the

exporter concerned furnished anundertaking:

to revise his price to remove the

dumping

Or the injurious effect of dumping

(as the case may be)

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Anti Dumping Duties

A penalty imposed on low-pricedimports, to increase their price in the

importing country and so protect localindustry from unfair competition.

Lesser duty Rule

Only that amount of duty which is

sufficient to remove the injury to thedomestic industry

1. dumping margin

2. injury margin

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Margin of DumpingDifference between the Normal Value

of the like article and the Export Price

of the product under consideration. The margin of dumping is generally

expressed as a percentage of the

export price.

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Injury Margin

Difference between the Fair Selling

Price and the landed value

Landed Value is the sum of

1.Assessable value under customs

Act

2.Basic Customs Duty


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Exceptions

1.Margin of Dumping

a. Exporter Specificb. Less than 2% of Export Price

2.Volume of Dumped Imports

a. Country specific

b. Less than 3% from individual

country and cumulatively not more

than 7%.

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Standing To File AnApplication

Express support of those whoaccount for more than 25% of

total domestic production, and

More than 50% production by

those supporting and thoseopposing the application.17


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Investigation Process

1. Preliminary Screening

2. Initiation

3. Access to Information

4. Preliminary Findings

5. Provisional Duty

6. Final Determination

7. Disclosure ofInformation8. Time-limit for Investigation Process

9. Termination

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Other Provisions

1. Retrospective Measures

2. Review3. Appeal

4. Refund of Duty

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Few Facts

India has filed roughly 20% of all global

antidumping cases, quite disproportionate

to its share of global imports of 2%.

Most of the cases are against China

1. Metal Sector (21)

2. Textile Sector (20)

3. Chemicals Sector (10)

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India AD as % of Global

Initiations

210

5

10

15

20

25

30

1995 1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009


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Share Of Anti Dumping

Investigations-productWise

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Case Study

Product: 2 MNI (2-Methyl (5) Nitro

Imidazole)

Exporter: China

Petitioners: 1.M/s Aarti Drugs Ltd.

2.M/s Unichem Labs Ltd.

Domestic Industry: The petitioners have

claimed that it accounts for almost

100% of the production during the

period of investigation

Case Initiated On: 8th Feb,2001

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Authority notified:1. Embassy of China in India(rule 5(5)

of the Rules)

2. Public notice to the known exporters

3. Known importers of 2 MNI in India

Data from Excise Department

Questionnaire to the importers (rule

6(4))

Period OfInvestigation: 1st

April, 2000 to 31st December, 2000 (9

months)

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Conclusion On Injury Decline in production and capacity

utilization during POI compared to the year1999-2000.

Decline in sales volume during the POIcompared to year 1999-2000

Selling price of subject goods in domesticmarket has declined during the POIcompared to the year 1998-99

Profitability of the domestic industry havesignificantly eroded.

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In Kg. 1998-99 1999-2000 POI Annualised

(POI)

Domestic

Production

1542594 1739447 1130809 1507745


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The Authority, after considering the

above, concludes the domestic industryhas suffered material injury from the

imports of 2 MNI originating from

China PR (Preliminary Findings vide

Notification No. 9/1/2001- DGAD dated3.5.2001 in the Gazette ofIndia)

Authority recommended imposition of

definitive Anti Dumping Duty equal to

the dumping margin

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Final findings : Notification No.9/1/2001-DGAD dated 5.2.2002

Final duty was imposed: Customs

Notification No.30/2002-Customs dated

27.3.2002.

Sunset Review Investigations: To

examine whether the expiry of anti

dumping duty would lead to

continuation or recurrence of

dumping, injury or both.27


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Thanks28

Documents

Anti Dumping Cases in India