Post on 28-Jul-2015
DUMPINGDisposing off the goods at a value lower than
its prevailing price in the origin country by the origin country so as to decrease the price of
goods cheaper to the price prevailing in destination country is called DUMPING.
Margin of Dumping
Landing Charges
Export Price
Normal Price in Exporting Market
Injury caused
Normal Value• Comparable price of the like article when
meant for home consumption in the exporting State
• Representative Export Price to another country
• Cost of Production including allowance for admin and selling cost and profitsExporting Price
• Export Price to other countries• Price at which the imported articles are first
resold to an independent buyer• On a reasonable basis
FEATURES OF DUMPING Disrupting the domestic market of
destination country Dumping is not illegal or immoral, it is
only threatening There is no fair motive behind doing such
practice as a rational man wont sell his product lower than his manufacturing cost.
ANTI DUMPING DUTY ADD is non competitive tax Countering the effects of dumping A form of penalty To rectify trade distract Empowering Fair Trade Practices Step towards Fair and Healthy
Competition
GENERAL AGREEMENT ON TARIFF AND TRADE OF WTO Agreement based on Harmonious
System of Taxation Came into force on 1 January 1948
and amended in 1994 The General Agreement is applied
"provisionally" by all contracting parties
India has framed Anti Dumping Duty Rules in consonance with the provision of the Article VI of GATT
Section 9BArticle VI
Either ADD or CVD can be levied for countervailing a particular dumping or export subsidies and not both the duties
Determination that import of such article causes or threatens material injury to any established industry in India or
materially retards the establishment of any industry in IndiaADD cannot be levied to counter effect the beneficial exemption available to exporter in the exporting country given to him in the
course of home consumption
ADD can be imposed to secure the domestic interest of any other Exporting Country
ADD wont be imposed if exporter revise prices or
cease exporting and injury is eliminated
With prior consultation with the exporting country, for the
stabilizing domestic prices in exporting nation Dumping
provision wont apply
GENERAL AGREEMENT ON TARIFF AND TRADE OF WTO
Levy of ADD under Customs Tariff Act, 1975 ADD on Margin of
Dumping on dumped article subject to Injury to Domestic Market
Article brought in unfinished/uncompleted/un assembled state and then completed. ADD to be extended on them too
ADD In addition to other duties
Other provisions of Customs Act, 1962 shall apply
Circumvention of ADD
Final finding
Duty can initially be levied for 5 years
Can be levied maximum of 10 years
Retrospective levy of prior 90 days if
dumping has been a history
TIME FRAME OF LEVY
RELAXATIONS UNDER FTP SCHEMES ADD shall not be applicable on 100
% EOU unlessSpecifically applicable orClearance after processing or as such
to DTA
ADD is covered under Advance Authorization exemption Scheme
ADD Litigations can be funded under MAI Scheme
PROCEDURES FOR INVESTIGATION(CUSTOMS TARIFF (IDENTIFICATION, ASSESSMENT AND COLLECTION OF ANTIDUMPINGDUTY ON DUMPED ARTICLES AND FOR DETERMINATION OF INJURY)RULES, 1995.)
Initiation of InvestigationMay carry investigation in the territories of other countries and at the
premises of any commercial organization and may examine its records if such organization agrees
Application for Investigation of alleged DumpingBy or on behalf of Domestic industry or
sou moto on evidence of dumpingImporters or related to
importers/exporters shall be excluded
Appointment of Designated Authority by CGNot below Rank of Joint Secretary Director General of Anti Dumping and
Allied Duties (DGAD)
*On or behalf of Domestic Industry means, applications must be supported by- More than 25% expressively supporting the application- More than 50% expressively supporting or opposing the application combined
INVESTIGATION PROCEDURE
Export Price Normal Value
•At ex-factory level
•Transaction-to-transaction
•Weighted Avg. Comparison in case affecting factors
Based on Records of exporter prepared on GAAP
S.P. of domestic market or to export
price to 3rd country
Counting for all the
costs, amortizations , and
Profits
Allowance for
costs and duties
incurred between importation and
reselling including
profits
S.P. in case of
Non Market
Economy
Comparison on the basis of
prices of a comparable Market Economy
Margin of
Dumping
Comparison:
FACTORS AFFECTING INJURY AND LINK WITH MARGIN OF DUMPING
Injury to Domesti
c Market
Volume of dumped Imports
Affect on prices of domestic market
Impact on producers
of domestic market
End effect is to depress prices or prevent
increase in prices of domestic industry
Cumulative Assessment
of two exporting dumping countries
Evaluation of
Economic Factors
Factors affecting increase
in dumping
Margin of Dumping
Casual
Link
DETERMINATION OF ADD
Injurious Price to Domestic Industry
Injury Non Injurious to Domestic Country
Not acceptable to Domestic Industry
Acceptable to Domestic Industry
ADD
DETERMINATION OF INJURY AMOUNT Fair Selling Price = Notional Price
Margin of Dumping to be considered
Information relating to Cost of Production to be considered based on Best use of raw materials, constituents and capacity
utilization by Domestic Market Propriety (Grouping) of expenses, their non-recurring
nature, Allocations and Amortization Reasonable Pre Tax Return on Capital Employed based on
Appropriate Working Capital and Fixed Assets Non includible amount such as non related R & D, post
manufacturing expenses, levies on sale, trading activity expenses, non cost items e.g. bad debts, loss on sale of assets, donations etc.
Reasonableness of Interest Cost to examine no abnoraml expenditure
W. Avg. of non injurious price of individual Domestic producers to be considered
INVESTIGATION PROCEDURE
• Public notices containing adequate information shall be issued notifying decision of authority to initiate investigation
Public Notice
• A copy of the public notice along with APPLICATION filed by domestic industry producers shall be forwarded by the designated authority to the known exporters of the article alleged to have been subsidized, the government of the exporting country concerned and other interested parties.
Notice to Exporters
• The designated authority may calling for any information in such form the exporters, foreign producers and governments of interested countries
• Such information shall be furnished by such persons in writing within 30 from the date of receipt of the notice or within such extended period as the designated authority may allow on sufficient cause being shown.
Information form
Exporters, Exporting Country
INVESTIGATION PROCEDURE
• The designated authority shall also provide opportunity to the industrial users of the article under investigation, and to representative consumer organizations in cases where the article is commonly sold at retail level, to furnish information which is relevant to the investigation
Opportunity to
Importers
• Oral information shall be taken into consideration only when it is subsequently reproduced in writing.Oral
Information
• In a case where an interested party refuses access to, or otherwise does not provide necessary information within a reasonable period, or significantly impedes the investigation, the designated authority may record its findings on the basis of facts available to it and make such recommendations to the Central Government as it deems fit under such circumstances.
Information not
provided
Terminati on/Suspension of Investi gati on
Dumping not so prevailing• Request in writing for doing so from or
on behalf of the domestic industry affected
• Lack of suffi cient evidence of dumping or injury to justify
• Margin of dumping is less than 2 per cent of the export price
• Volume of the dumped imports, actual or potential, from a particular country accounts for less than 3 per cent of the imports
• However if collectively contribution from these countries accounts for more than 7 per cent of the import of the like product, it shall not terminate
• injury where applicable, is negligible.
Price Undertaking• If exporter
(i) furnishes an undertaking in writing to revise the prices so that no exports of the said article are made to India at dumped prices or
(ii) undertake to revise the prices so that injurious effect of dumping is eliminated and the designated authority is satisfied about this
• Designated authority shall intimate the acceptance of an undertaking and suspension or termination of investigation to the Central Government and also issue a public notice in this regard
• Designated Authority shall from time to time review the need for continuance of any undertaking
FINDINGS OF INVESTIGATION
Preliminary Finding
Existence of subsidy and injury
Public Notice of Finding
Levy Provisional Duty after 60 days of
Notice
Valid for 6 months (9 months if extended
by CG)
Final Finding
Dumping Margin of each individual exporter or Valid
Sample
Public Notice of
Final Finding
Levy of Duty or Withdrawal of
Provisional Duty and
Refunds thereof
FINAL FINDING
Designated authority within 1 year (extended by 6 year by CG, suspension period not included) will give final finds to CG aboutExport price, normal value, margin of
dumpingWhether import of the said article causes
or threatens material injuryA casual link, where applicable, between
the dumped imports and injuryReasons for retrospective levy, if to be
leviedRecommend ADD
ADD
If Findings in +ve, Opportunity to the exporter for ceasing to supply
the product or furnish and undertaking of reduced prices
Exporter do not eliminate dumping
CG within 3 months of final finding notice, will
levy ADD
Individual
Exporters
ADD @ Margin of Dumping
Non sampled exporters
Not to be more than W. Avg.
Margin of dumping,
Prospective basis on future exporters
Maximum of W. Avg. normal value minus export price can be
levied as ADD
Exporter Eliminate Dumping
No further levy of ADD
if the final
findings is
negative,
CG Within
45 days of final finding shall
withdraw Provisional Duty (if any)
Final Duty if be less than
Provisional Duty, to be refunded
FINAL FINDING
ADD LEVY OR WITHDRAWAL Duty (provisional or final) shall be
levied from the date of publication in gazette, final duty can be levied from date of provisional duty date. Retrospective levy can be only from not prior than levy of provisional duty
Duty in case of violation of price undertaking shall be from date of violation of price undertaking and cannot be Retrospectively
REFUND OF ADDCUSTOMS TARIFF (IDENTIFICATION, ASSESSMENT AND COLLECTION OF ANTI-DUMPING DUTY ON DUMPED ARTICLES AND FOR DETERMINATION OF INJURY) RULES, 1995
Importer may file application with designated authority in such form and such documents if he is of the opinion that he has paid any anti-dumping duty imposed in excess of the margin of dumping
Designated authority shall initiate investigation
The designated authority shall, after investigation, determine the actual margin of dumping for the goods and if the anti-dumping paid on the goods is in excess of the margin of dumping so determined, the authority shall make recommendation to the Central Government within nine months and in no case more than 12 months, from the date of receipt of the application, complete in all respects, to refund the difference of Excess of ADD.
REFUND OF ADDREFUND OF ANTI-DUMPING DUTY (PAID IN EXCESS OF ACTUAL MARGIN OF DUMPING) RULES 2012
The importer shall file refund application within 3 months from date of notification of reduction of ADD or consequence to a judgment, decree or order with AC/DC of Customs at the port of importation
Deficiencies if any to be corrected and re submit the refund application
AC/DC after his satisfaction shall refund the excess ADD to importer subject to doctrine of Unjust Enrichment
REVIEW OF FUTURE DUMPING EXPORTERS The designated authority shall carry out a periodical review
for the purpose of determining individual margins of dumping for any exporters or producers in the exporting country in question who have not exported the product to India during the period of investigation
Provided that these exporters or producers show that they are not related to any of the exporters or producers in the exporting country who are subject to the anti-dumping duties on the product.
During the review period no duty shall be levied on them.
CG may resort to provisional assessment and may ask a guarantee from the importer if the designated authority so recommends and if such a review results in a determination of dumping in respect of such products or exporters
REVIEW OF ADD
ADD levied
5 years
Investigation after
reasonable time12
months
ADD will remain effective so long as and to the extent necessary
Sou Moto
Request by
Interested Party
After investigation, recommend to CG to withdraw
duty if found satisfactory
CIRCUMVENTION OF ADD
ABC Ltd. Computers
LED Monitor PC LED TV set
XYZ Ltd. Computers
INDIA
ABC Ltd. Computers
LED Monitor PC
CIRCUMVENTION OF ADD
•Designated either sou moto or receipt of written application of domestic industry, shall initiate proceedings of Circumvention of duty
•Procedure of original investigation will apply mutatis mutandis.
•Investigation to be concluded within 12 month (extended by 6 months by CG on its satisafaction).
•After investigation authority may recommend imposition of anti dumping duty to imports of articles found to be circumventing an existing anti dumping duty or to imports of article originating in or exported from countries other than those which are already notified for the purpose of levy of the antidumping duty
CIRCUMVENTION OF ADD
•Such levy may apply retrospectively from the date of initiation of the investigation of circumvention.
•PUBLIC NOTICE shall be issued.
•CG after recommendations may extend the anti dumping duty to imports of other article.
•Review shall also be undertaken under this aspect which will be completed within 12 months from date of initiation of review.
Back
Appeal against Order of ADD
Provisions of Section 129C of Customs Act, 1962 will apply to Tribunal, Appeal shall be heard by Special Bench constituted by
president of Tribunal consisting of President and at least 2 members (1 judicial and 1 technical).
Tribunal after giving opportunity of being heard pass such order as it may deem fit
Importer of goods shall file appeal with CESTATWithin 90 days (or extended by CESTAT
on satisfaction) of Order
Along with Fees Rs. 15,000Stay Applications will bore a fees of Rs.
500
THANK YOU
MANISH KR.MANISH619SACHDEVA@YAHOO.IN+91-9910918575