Context: The Directorate General of Trade Remedies (DGTR), Ministry of Commerce and Industry had prescribed the procedure and timelines for initiating an Antidumping Sunset Review investigation (SSR) under the Customs Tariff Act 1975 and the Anti-dumping Rules.
More about the news:
The said notice prescribed a minimum time of 270 days prior to the expiry of the anti-dumping measure in force, for filing the SSR application, which could be relaxed till 240 days with justification of delay.
- It has been observed that the prescription of time limit for filing the SSR application, has brought a reasonable degree of discipline and has resulted in the SSR application being filed well before the expiry of the measure.
- However, on account of unavoidable circumstances, the domestic industries are unable to adhere to the prescribed timeline of minimum 240 days prior to expiry of measures.
About anti-dumping duty:
- An anti-dumping duty is a protectionist tariff that a domestic government imposes on foreign imports that it believes are priced below fair market value.
- India is one of the largest consumption economies in the world and a potential ground for dumping a wide variety of goods, especially from China, Taiwan and South Korea.
- That is why India must have strong anti-dumping defences in place.
- Anti-Dumping Duty is applicable only for a selective period. If dumping still continues, the industry can apply for a sunset review at the end of 5 years.
- Globally, once a sunset review is applied for, the duty is extended for 1 year pending investigation.
- In India, industries have been asked to apply for sunset review 9 months before the expiry of the duty.
- This made the Indian players getting deprived of protection for a year compared to their peers across the world.
The Directorate General of Trade Remedies(DGTR)
- DGTR functions as an attached office of the Department of Commerce, Ministry of Commerce and Industry.
- It is a professionally integrated organisation with multi-spectrum skill sets emanating from officers drawn from different services and specialisations.
- Earlier known as Directorate General of Anti-dumping and Allied Duties, DGTR was named in 2018 as an integrated single window agency for providing comprehensive and swift trade defence mechanism in India.
- Earlier, the Directorate General of Anti-dumping and Allied Duties (DGAD) dealt with anti-dumping and CVD cases, Directorate General of Safeguards (DGS) dealt with safeguard measures and DGFT dealt with quantitative restriction (QR) safeguards.
- The DGTR brings DGAD, DGS and Safeguards (QR) functions of DGFT into its fold by merging them into one single national entity.
- DGTR now deals with Anti-dumping, CVD and Safeguard measures.
- It also provides trade defence support to our domestic industry and exporters in dealing with increasing instances of trade remedy investigations instituted against them by other countries.
- DGTR provides a level playing field to the domestic industry against the adverse impact of the unfair trade practices like dumping and actionable subsidies from any exporting country, by using
- Trade Remedial methods under relevant framework of WTO arrangements,
- Customs Tariff Act & Rules and
- other relevant laws and International agreements, in a transparent and time bound manner.
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