This article intends to provide a year-end round up of the trade remedy investigations related initiations, final findings, and measures imposed by the Government of India. Providing various statistics relating to initiations and countries targeted, recommendations of the DGTR, and finally the implementation of various trade remedy measures, the authors observe that the third quarter of the year was the busiest for DGTR. They also observe that while the maximum number of investigations were initiated against imports from China, the DGTR also initiated investigations on many new products such as printed circuit boards, aluminium frames for solar frames/modules, epichlorohydrin, easy open end of tin plates, etc. Further, according to them, for legacy products, a very strong case on injury with minimal impact on the user industry seems desirable to succeed. The authors also state that it will be interesting to see if the domestic industry prefers Safeguard Quantitative Restrictions as a more appropriate tool where protection is required for a shorter period
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The article in this issue of International Trade Amicus focuses on the implication of the recent judgement of the Court of Justice of the European Union (‘CJEU’) relating to the Non-Preferential Rules of Origin which are used to determine the origin of goods from a country not part of any trade agreements with the EU. The CJEU has held that the primary rule for CTSH 7304 41 under the Rules of Origin is invalid to the extent it excludes the cold rolled processing performed on hot-rolled tubes or mother pipes classifiable under CTSH 7304 49. The author here points out that in view of the decision of the CJEU, the European Anti-Fraud Office (‘OLAF’) must terminate its investigations, initiated suspecting evasion of anti-dumping duties, against Indian exporters, alleging that Indian exporters were involved in import into India of Chinese origin hot-finished products and after insufficient transformation by way of cold rolling, exporting it to the EU declaring such exports as Indian originating product. According to the author, as the EU market opens, this will give a significant boost to Indian exports from this sector.
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The article in this issue of International Trade Amicus analyses a recent DGTR Final Finding in an anti-dumping investigation concerning imports of ‘Metronidazole’ originating in or exported from China PR and focusses on the question of eligibility of a company as a domestic industry to file the anti-dumping application for the product under the extant anti-dumping law. Stating that the twin exceptions, wherein the domestic producer(s) may be considered ineligible to file application for investigation despite fulfilling the prescribed threshold, use the word ‘may’ which provide a discretion to the DGTR to determine ineligibility on a case-to-case basis, the article highlights how the past practices have varied from one investigation to the other. Elaborately discussing the recent final finding, the author states that how the Authority has attempted to provide a detailed reasoning replete with relevant domestic and WTO jurisprudence to justify its stand on the issue. The author believes that hopefully the present findings can be used to provide some broad principles or guidelines to follow for other cases.
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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.
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The article in this issue of International Trade Amicus discusses elaborately the European Union’s Non-Preferential Rules of Origin, specifically focusing on Rules in the context of their assistance in effective implementation of trade remedial measures imposed by the EU. Deliberating on the legal provisions, including the key components of the Rules, the article highlights an illustration depicting changes made in preferential rules of origin for preventing circumvention of trade remedial measures, and the fact that applying Rules can be a complex exercise for the exporters due to the intricacies of the modern supply chains. According to the author, it is extremely important for the exporters to the EU to maintain strong documentation supporting the integrity of the supply chains. Further, the exporters must educate themselves of the product specific non-preferential rules of origin to stay true to the originating status of a product. This is important for an exporter to prevent any investigations by EU Authorities like the EC or the European Anti-Fraud Office.
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The article in this issue of International Trade Amicus analyses the trade remedy circumvention provision when an unassembled, incomplete or unfinished article is imported and assembled, completed or finished in India or in some other country. Reiterating the provisions and after elaborately discussing the provisions relating to ‘change in pattern of trade’ and ‘nature of operations’, the article goes on to discuss the circumvention provisions as applicable in the European Union and the United States of America, with respect to assembly operations and processing activity. According to the author, it is imperative that the Indian Authority also considers a broader perspective for carrying out circumvention investigations. He states that the Authority, rather than relying on quantitative value addition criteria, may consider adopting a holistic approach to ascertain whether there is due cause and economic justification in the activity which will help in reducing hardship to genuine business carried out by an operator.
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Article in this July 2013 issue of International Trade Amicus discusses various procedures which are different in India and USA and also how they are inconsistent with the WTO Agreement.
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The WTO panel recently ruled against India(‘s import duty measures in relation to certain Information and Communication Technology (‘ICT(’) goods, holding the measures as inconsistent with Articles II:1(a) and (b) of the GATT 1994. The article in this issue of International Trade Amicus analyses the critical arguments raised by India to defend its position and the panel’s ruling thereon. Elaborately discussing what the parties to the dispute (European Union and few other countries on one side and India on the other) had to say, the article also analyses the WTO panel’s findings on questions as to whether Information Technology Agreement ((‘ITA(’) sets forth India(‘s legal obligation, whether ITA limits or modifies scope of tariff commitments under WTO Schedule, and whether there was an error of fact. According to the author, although India is making every effort to ensure a favourable ecosystem for electronics manufacturing in India, it is evident that its ITA commitments are going to create headwinds in the near future at least. The author however hopes that India is able to negotiate in its favour better terms with the complainants via bilateral agreements.
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The article in this issue of International Trade Amicus intends to bridge the awareness gap with respect to trade remedial investigations, and sensitize producers/exporters on certain aspects which will help prepare them for any potential trade remedial investigation. Deliberating on the importance of Enterprise Resource Planning (ERP), as the key raw material in any trade remedial investigation is the data of the participating producer and exporter, the article also notes that ERP becomes important not just for preparation of questionnaire response but also for its verification by the investigating authority. The article, in this regard, also notes the importance of regular cost and price monitoring for the goods sold in the export and domestic markets. Further, the article also observes that it is important for a producer to ensure that its traders/exporters are willing to support it and participate in a trade remedial investigation. According to the authors, producers/exporters must aim to secure their position in the market by participating in the investigation and getting the best results/best rate of ADD/CVD for themselves.
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What is Anti-dumping
Indian Investigation Formats
Customs Tariff Act
Rules & Regulations
Trade Notices
WTO AD Agreement
Article VI of GATT