Presentation on Anti-dumping AT FOREIGN SERVICE INSTITUTE AT 3:00 PM on 19/2/2015 By: Shri J.K.Dadoo Joint Secretary Department of Commerce

D IRECTORATE G ENERAL OF A NTI - DUMPING AND A LLIED D UTIES The Directorate General of Anti-dumping and Allied Duties (DGAD) administers the Anti-dumping and anti-subsidies & Countervailing measures in India. It functions in the Department of Commerce in the Ministry of Commerce and Industry and is headed by the ‘Designated Authority’. 2

The Designated Authority’s function is to conduct the anti-dumping/anti-subsidy & countervailing duty investigations and make recommendations to the Central Government for imposition of anti-dumping or anti-subsidy measures. The Designated Authority recommends the Anti-dumping duty/ Countervailing and it is the Department of Revenue (Ministry of Finance), which imposes/levies such duty vide its Notification within three months of the receipt of the recommendation. 3

Trade Remedy measures under WTO framework Anti-dumpingCountervailingSafeguards Imports at dumped prices Subsidised imports Surge in imports Causing material injury to domestic Industry Causing serious injury to domestic industry

Legal framework on Trade Remedy Customs Tariff Act, Section 8B, 8C,9, 9A,9B &9C Customs Tariff (Identification, Assessment and Collection of Anti-dumping Duty on Dumped Articles and for Determination of Injury) Rules, 1995 Customs Tariff (Identification, Assessment and Collection of Countervailing Duty on Subsidised Articles and for Determination of Injury) Rules, 1995 Customs Tariff (Identification and Assessment of Safeguard Duty) Rules 1997 Customs Tariff (Transitional Product Specific Safeguard Duty) Rules 2002

Investigation Procedure and Imposition of duty Anti-dumping and Countervailing Duty Initiation, Investigations and Recommendations by Designated Authority, Department of Commerce Imposition and collection of anti-dumping and countervailing duty by Department of Revenue, Ministry of Finance

Safeguard Duty Initiation, Investigations and Recommendations by DG(Safeguards), Department of Revenue, Ministry of Finance Approval by Board of Revenue, headed by Commerce Secretary Imposition and collection of safeguard duty by Department of Revenue, Ministry of Finance

Review of anti-dumping duty Mid-term Review The Designated Authority shall review the need for the continued imposition of any anti-dumping duty, where warranted, on its own initiative or upon request by any interested party. Designated Authority shall recommend to the Central Government for its withdrawal, where it comes to a conclusion that the injury to the domestic industry is not likely to continue or recur, if the said anti-dumping duty is removed or varied and is therefore no longer warranted.

Sunset Review Notwithstanding anything contained in sub- rule (1) or (1A), any definitive anti-dumping duty levied under the Act, shall be effective for a period not exceeding five years from the date of its imposition. Designated authority can on a review initiated before that period, extend the said anti- dumping duty if the situation is likely to lead to continuation or recurrence of dumping and injury to the domestic industry.

Cases under investigation and duty not yet imposed/ duty imposed by India so far against all countries (as on Jan, 2015) Sl.No. CountryNo. of initiationsDuty imposed 1China PR EU Korea RP Chinese Taipei Thailand USA Japan Singapore Malaysia Russia Others Total

Others include the following countries Australia Bangladesh Belarus Brazil Bulgaria Canada Egypt Hong Kong Indonesia Iran Israel Kenya Mexico Nepal New Zealand Norway Oman Pakistan Philippines Qatar Vietnam 11

No. of Cases initiated against China PR YearNo. of Initiations Duty imposed * Upto Jan,

No. of Cases initiated against China PR YearNo. of Initiations Duty imposed *1 1 Total * Upto Jan,

Fresh and Review cases under investigation country wise as on Jan, 2015 Country No. of cases under investigation Fresh Cases under investigation Out of Col.(2) Review Cases under investigation out of Col. (2) on which duty already imposed is in force China PR EU633 Korea RP1147 Chinese Taipei523 Thailand725 USA532 Japan220 Singapore211 Malaysia541 Russia321 Others1697 Total

Anti-dumping cases under investigation as on Jan, Investigation TypeNo. of CasesDuty in force China PR Fresh Cases11- Mid- term Review02 Sun set Review19 NSR04 Total3625 Other countries Fresh Cases32- Mid- term Review022 Sun set Review28 Total6226

Time for completion of Cases As per Customs Tariff Act and Rules framed thereunder, time limit for completion of Anti-dumping investigation is 12 months. Department of Revenue may allow extension of time beyond 12 months As far as possible the investigations are completed within 12 months Extension of time is taken due to litigation, data gaps, complexities of case, etc. Other constraints are:- - Limited staff - There were 4 teams till last year and 5 teams this year for investigation 16

Details of notification issued by DGAD during last three years Initiations Years China PROtherTotalChina PROtherTotalChina PROtherTotal Fresh MTR NSR SSR Total Focus on investigations against dumping from China PR. Out of 37 initiations during 2014, 43% relates to China PR

Details of notification issued by DGAD during last three years Findings PF China PROther TotalChina PROtherTotalChina PROtherTotal PF Final findings Years China PROtherTotalChina PROtherTotalChina PROtherTotal Fresh MTR NSR SSR Total

Countervailing Duty on Subsidized Articles Directorate General of Anti-dumping and Allied Duties is mandated to initiate, investigate and recommend imposition of Countervailing Duty on Subsidized Articles to the Central Government. The legal framework under which the Anti- subsidy investigations are carried by the DGAD is Customs Tariff (Identification, Assessment and Collection of Countervailing Duty on Subsidized Articles and for Determination of Injury) Rules, 1995

Subsidy exists where any country or territory bestows any financial contribution in the form of grant, equity, loan etc. or any other benefit accruing financial advantage which gives a competitive edge to the exporters of that country vis-à-vis the producers in the importing country. The Central Government may, by notification in the Official Gazette, impose a countervailing duty not exceeding the amount of such subsidy Countervailing measure in the form of countervailing duty is to be imposed only after the determination that the subsidy is specific subsidy and it relates to export performance.

CVD Cases On , DGAD initiated Countervailing Duty investigation concerning imports of Castings for Wind Operated Electricity Generators whether or not machined in raw finished or sub assembled form or as a part of a sub assembly or as a part of an equipment component meant for wind operated electricity generators originating in or exported from China PR. 21

Steps taken towards establishment of DGTR JS in charge of DGAD has been declared as HOD US(Anti-dumping) has been designated as DDO Separate DGTR Budget has been operational since New DDO code has been allotted for cash transactions of DGTR 22

Income tax Deptt. has allotted TAN in favor of DGTR For separate website of DGTR matter is under active consideration with NIC and Deptt of Electronics KRA-Separate KRA has been identified for DGTR ISO certification for DGTR is in the process with Quality Council of India DGAD has started its functioning in new office at Jeevan Tara Building, Parliament Street from June,

Filling up of posts Out of 82 Sanctioned posts of various grades the following 33 no. of posts are lying vacant for which concerned authorities have been requested from time to time for nomination of suitable officers:- Director(ITS)-3 Costing Officers-6 IES officers-2 Legal Service officers-3 Statistical Investigator-1 System Analyst -1 Assistants-7 PS/PAs- 4 UDC-4 MTS-2 24

At least 1 Accounts Officer and 4 Assistants required. D/o Expenditure has been requested at CS level for posting of Costing Officers. 25

CESTAT The law provides that an order of determination of existence degree and effect of dumping is appealable before the Customs, Excise and Service Tax Appellate Tribunal (formerly CEGAT). However, as per the judicial view, only the final findings/order of the Designated Authority/Ministry of Finance can be appealed against before the CESTAT. No appeal will lie against the Preliminary findings of the Authority and the provisional duty imposed on the basis thereof.

The Appeal against the order of Central Government arsing out of final findings of Designated Authority may be filed before the CESTAT within 90 days. The post of President, CESTAT is currently held by Justice G. Raghuram. As on date, there are 90 cases pending in CESTAT.

Challenges Requirement of Manpower- increase in anti- dumping cases due to global slowdown. There are 98 cases under investigation and only 5 experienced teams to handle these cases. Need to involve industrial chambers and industry associations in educating industry specially MSMEs on these issues and set up specialist cells to assist DGAD Directorate General of Trade Remedies has to be created to defend cases of anti-dumping and CVD against India as also to investigate cases of anti- dumping and CVD filed by Domestic Industry. Staff constraints need to be overcome.

Thank you 29