Dumping duty law may change

The government is considering amending the Customs Tariff Act. According to this Act, the Center's power to impose countervailing duties can be exercised only after an investigation is conducted by the Directorate-General of Anti-dumping (DGAD).

A countervailing duty is levied on imports to negate the impact of any subsidy on a product given by the government of any exporting country.

Officials told Business Standard that the amendments, proposed by the commerce and industry ministry, were being considered to bring the language of the Act in conformity with the World Trade Organisation's Subsidies Agreement.

It will also make a proper distinction between the role of the DGAD and the government.

"The amendments clarify that though the powers to impose countervailing duties retrospectively remain with the government but the DGAD has been entrusted with the authority to determine the existence of the conditions after following the due process of investigations," said an official.

The powers of the central government are also proposed to be restricted to imposing countervailing duties only where "subsidies" provided by an exporting country are "specific" in accordance with the WTO agreement.

"As per the amendments, the duty can be imposed only if the DGAD's investigation results are positive," officials said.

They added that the proposed amendments also included a common definition of the designated anti-dumping authority for the purposes of countervailing investigation, anti-dumping agreement, refunds provisions and injury.

Officials said the provisions of the Act pertaining to refund of provisional countervailing duties were also proposed to be re-worded as the present provisions provided for refund of duties only if they exceeded the subsidy amount.

The proposed amendments also seek to give specific powers envisaged in the mid-term review to the DGAD while the powers to terminate duties as a consequence of the review are vested with the central government.

Officials said the requirements that the countervailing duties remained in force for a maximum of 12 months pending completion of the review, were also sought to be deleted as there was no such obligation under the subsidies agreement.

The new arrangement

---

• The new Act will make a proper distinction between the role of the Directorate-General of Anti-dumping and the government
• The powers of the Centre to impose countervailing duties will be restricted
• Designated anti-dumping authority to be defined for the purposes of countervailing investigation and refunds provisions
• Requirements that the countervailing duties remain in force for a maximum period of 12 month are also sought to be deleted
• Provisions of the Act pertaining to refund of provisional countervailing duties are also proposed to be re-worded