Dhruv GuptaPartner
Bhargav MansattaCounsel
Bhava SharmaConsultant
Key Developments
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Rules amended to allow new exporters to request separate countervailing duty rate
The Customs Tariff (Identification, Assessment and Collection of Countervailing Duty on Subsidised Articles and for Determination of Injury) Rules, 1995 (CVD Rules) were amended with effect from 23 July 2024 to introduce a new Rule 23A. This rule permits new exporters of a product (i.e., who did not export to India during the original countervailing duty investigation on the product), to request a ‘new shipper review’ from the Directorate General of Trade Remedies (DGTR) to determine the countervailing duty as per subsidy margin and injury margin determined for their exports to India.
Before the amendment, there was no specific legal provision in the CVD Rules to request new shipper reviews of existing countervailing duties on products. This lacuna was more noticeable and raised industry concerns because such a provision existed under the anti-dumping rules and various new shipper reviews have been conducted over the years pursuant to it. This amendment brings the CVD Rules in line with the anti-dumping rules and provides a more equitable framework for new exporters.
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Trade remedy actions on imports into India in the third quarter of 2024
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Initiation of investigations
The DGTR initiated numerous anti-dumping investigations in the third quarter of 2024 to examine whether anti-dumping duty should be imposed or continued on imports into India. These investigations focus on products such as Copolymer Polyol, certain Cranes, Solar Cells, certain Antioxidants, Acrylonitrile Butadiene Rubber, Monoethylene Glycol, Resorcinol, Para Nitrotoluene, Virgin Multi-Layer Paperboard, Aniline, 1,1,1,2-Tetrafluoroethane or R-134a, Sodium Citrate, Black Toner, Siloxane Polyoxyalkylene Copolymers, Polytetrafluoroethylene (PTFE), Hot rolled flat products of alloy or non-alloy steel, Cold Rolled Non‐Oriented Electrical Steel, Filler Masterbatch, etc.
The governments of exporting countries, exporters, and importers of these products in India are expected to actively respond to these investigations to avoid or minimise the impact of Indian trade remedy measures on their business.
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Issuance of recommendations for imposition of trade remedy measures
The DGTR has recommended definitive anti-dumping/countervailing duties on Epichlorohydrin, Isopropyl Alcohol, Sulphur Black, Thermoplastic Polyurethane, Unframed Glass Mirror, and Welded Stainless-Steel Pipes and Tubes. The DGTR also recommended imposition of provisional anti-dumping duty on Aluminium foil up to 80 microns (excluding aluminium foil below 5.5 microns for non-capacitor applications) from China.
The implementation of these recommendations is awaited.
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Imposition of anti-dumping and countervailing duties
The Ministry of Finance has imposed anti-dumping/countervailing duty on Anodized Aluminium Frames for Solar Panels/Modules, Chlorinated Polyvinyl Chloride, New/Unused pneumatic radial tyres, Welded stainless-steel pipes and tubes, Atrazine Technical, and Isobutylene-Isoprene Rubber.
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Export of steel products from India face anti-dumping investigations in various countries
Exports of steel products from India are seeing increasing international scrutiny, with several countries initiating anti-dumping investigations. The European Union, Vietnam, Malaysia, and Brazil have launched investigations into various Indian steel products. Indian exporters of these products should actively respond to these investigations to avoid or minimise the impact of potential anti-dumping duties.1
[1]European Union has initiated anti-dumping proceedings on exports from India of certain hot-rolled flat products of iron, non-alloy or other alloy steel, Vietnam on hot rolled steel products, Malaysia on tinplate, and Brazil on pre-painted steel products.
