The Customs Tariff Act, 1975 contains various provisions for giving relief to the domestic producers against injury caused to them by imports. These include Section 8B, Section 9, Section 9A, Section 9B and Section 9C of the Customs Tariff Act, 1975 and the rules made there under. These provisions are aimed at offsetting the adverse effects of increased imports, subsidized imports or dumped imports. 

Anti-Dumping Duty 

Relief to the domestic producers against dumped imports is provided under Section 9-A of the Customs Tariff Act and the Customs Tariff (Identification, Assessment and Collection of Anti-dumping Duty on Dumped Articles and for Determination of Injury) Rules, 1995. Dumping means export of an article from any country or territory to India at less than its normal value i.e. when the prices at which the goods are exported to India are less than the comparable price for the like product when destined for consumption in the domestic market of the exporting country. The Central Government can impose anti-dumping duty only if the imports of dumped article into India causes and threatens material injury to any established industry in India and materially retains the establishment of any industry in India. If the domestic industry has evidence to show dumping and material injury caused to it by dumped imports, it may make an application to the Director-General (Anti-dumping and Allied Duties) in the Ministry of Commerce for an investigation in the matter. A copy of guidelines-cum-application proforma for anti-dumping petitions' can be obtained from the Directorate-General of Anti-dumping and Allied Duties in the Ministry of Commerce or from various Industry Chambers and Associations. 

The petition should specifically cover information, inter-alia, on the following : 

i) Imported product;

ii) Domestic industry and domestic market;

iii) Evidence of dumping; 

iv) Evidence of injury; & 

v) Evidence of causal link

The Rules permit information to be provided on confidential basis also. The petition is required to be submitted in two copies along with one non-confidential version thereof. The petition needs to be addressed to the Designated Authority: 

Directorate of Anti-dumping & Allied Duties, 
Ministry of Commerce, 
Udyog Bhavan, 
New Delhi-110001. 

Countervailing Duty on Subsidies 

Countervailing Duty to offset any adverse effect of subsidies granted on any goods exported to India can be imposed under Section 9 of the Customs Tariff Act, 1975 read with the Customs Tariff (Identification, Assessment and Collection of Duty on Subsidised Article and for determination of injury) Rules, 1995 which have come into force w.e.f.1.1.95. 

As in the case of Anti-dumping Rules, the Countervailing Duty Rules govern the operational mechanism of imposition of Countervailing Duty. The provisions under the Countervailing Duty Rules are similar to those contained in the Anti-dumping Rules. 

In India an anti-dumping or countervailing duty investigation is generally initiated on a written application by or on behalf of the domestic industry. While a number of anti-dumping cases have been investigated over the last few years, no countervailing duty investigation has been initiated so far. 

Anti-dumping 

Q.1. Who can file an application ? 

Ans.1. A dumping investigation is normally initiated only upon receipt of a written application by or on behalf of the "Domestic Industry" 

In order to constitute a valid application, the following two conditions have to be satisfied. 

(i) The domestic producers expressly supporting the application must account for not less than 25% of the total production of the like article by the domestic industry in India; and 

(ii) The domestic producers expressly supporting the application must account for more than 50% of the total production of the like article by those expressly supporting or opposing the application. 

Applications can be made by or on behalf of the concerned domestic industry to the Designated Authority in the Ministry of commerce for an investigation of any alleged dumping. The Designated Authority may initiate an investigation when there is sufficient evidence that dumped imports are causing or are threatening to cause material injury to he Indian industry producing like articles or are materially retarding the establishment of an industry. 

Q.2. What information is required to be included in the application ? 

Ans.2. Applications should be submitted to the Designated Authority in the Ministry of Commerce in the prescribed form. Guidelines on how to complete a questionnaire are a part of the prescribed application proforma. 

The proforma also advises the applicant of the type of evidence required in appropriate areas. 

Part-I (i) Complete description of alleged dumped goods, including information on its size, quality, category and uses of such goods along with any applicable technical specifications or standards (national or international ) and the tariff classification numbers, customs classification, customs duty, import policy (including Advance Licensing provisions). 

(ii) Country(ies) of origin of the alleged dumped goods. 

(iii) Since when such goods from the named country(ies) (are) being imported in the Indian market and when did dumping start. 

(iv) Whether such goods are shipped to India through third countries. 

(v) Volume and value of such dumped goods imported into India from each country alleged to be dumping the goods for the past two year and the current year to date. 

(vi) Volume and value of such goods from other countries, not alleged to be dumping the goods, for the past two year and the current year to date. 

(vii) Name(s) and address(es) of known exporters and manufacturers of the alleged dumped goods. 

(viii) Name(s and address(es) of known importers of the alleged dumped goods in India. 

(ix) Name(s) and address(es) of the users of the alleged dumped goods in India. 

(x) Name(s) and address(es) of associations of the users of the alleged dumped goods in India. 

Part II - Indian Industry 

Complete information needs to be provided about the Indian industry producing the subject goods. The following information is relevant for this section of the complaint: 

(i) Name(s) address(es), contact person, telephone numbers, and fax numbers of Indian producers of the subject goods who are lodging the plaint. 

(ii) Name(s), address(es), contact person, telephone numbers, fax numbers of Delhi Office, if any of the Indian producers of the subject goods who are lodging the complaint. 

(iii) Name(s) and address(es) of Indian producers other than complainant alongwith their production (volume and value) of subject goods during the last two years. 

(iv) Whether viable substitutes exist for the product. If so, complete information about the substitutes and their degree of substitutions. 

(v) Subject goods (including size, type, range, models) that petitioner(s) produces. Details of articles that petitioner(s) is/are capable of producing. Details of goods the petitioner(s) may purchase to complement the product line. 

(vi) Does any of the petitioner(s) import and/or export the subject goods. If yes, details of country wise volume and value of imports and exports during the last two years and in the current year to date. 

(vii) What are the differences in the petitioner(s) product and the alleged dumped product, if any. To the extent feasible, differences in the imported product and petitioner's product need be quantified. 

(viii) Difference in the production process employed by the petitioner(s) and the exporters. It would be appropriate to quantify the impact of such differences, if any, on prices. 

(ix) Volume and value of Indian production with a separate breakdown of petitioner(s) and of other Indian producers not party to this complaint for the last past two completed years and current year to date. 

Q.3. When one can file an application ? 

Ans.3. Applications can be made by or on behalf of the concerned domestic industry to the Designated Authority in the Ministry of Commerce for an investigation of any alleged dumping and when there is sufficient evidence that dumped imports are causing or are threatening to cause material injury to he Indian industry producing like articles or are materially retarding the establishment of an industry. 

Q.4. What is the meaning of like Article, domestic industry, normal value, export price, margin of dumping and material injury ? 

Ans.4. Like Article means an article which is identical or alike in all respects to the article under investigation for being dumped in India or in the absence of such article, another article which although not alike in all respects, has characteristics closely resembling those of the articles under investigations. 

Domestic industry means the domestic producers as a whole engaged in the manufacture of the like article and any activity connected therewith or those whose collective output of the said article constitutes a major proportion of the total domestic production of that article except when such producers are related to the exporters or importers of the alleged dumped article or are themselves importers thereof in which case such producers may be deemed not to form part of domestic industry. 

Normal value means the comparable price at which like products are sold, in the ordinary course of trade, in the domestic market of the exporting country or territory. 

Export Price means price of goods imported into India and is the price paid or payable for the goods by the first independent buyer. 

Margin of dumping refers to the difference between the Normal value of the like article and the Export Price of the product under consideration. The margin of dumping is generally expressed as a percentage of the export price. 

In regard to Injury to the Domestic Industry the Indian industry must be able to show that dumped imports are causing or are threatening to cause material injury to the Indian `domestic industry'. Material retardation to the establishment of an industry is also regarded as injury. 

The material injury or threat thereof cannot be based on mere allegation, statement or conjecture. `Sufficient evidence must be provided to support the contention of material injury. 

Q.5. How to collect information about normal value and export price ? 

Ans.5. Normal value: 

The normal value is the comparable price at which the goods under complaint are sold, in the ordinary course of trade, in the domestic market of the exporting country or territory. The information about normal value can, therefore, be collected from the sale invoices in the domestic market of the domestic country. 

If the normal value cannot be determined by means of domestic sales, the Act provides for the following two alternative methods:- 

Comparable representative export price to an appropriate third country. 

Cost of production in the country of origin with reasonable addition for administrative, selling and general costs and for profits. 

Export Price: 

The export price of goods imported into India is the price paid or payable for the goods by the first independent buyer. The information, therefore, can be collected from import documents. 

Constructed Export Price 

If there is no export price or the export price is not reliable because of association or a compensatory arrangement between the exporter and the importer or a third party, the export price may be constructed on the basis of the price at which the imported articles are first resold to an independent buyer. 

Q.6. How to collect information about imports in the country ? 

Ans.6 Data on the volume and value of imported goods can be compiled from some published sources, such as the Directorate General of Commercial Intelligence & Statistics (DGCI&S) publications, Customs Daily Lists and/or information otherwise available. Source of information must be specified while furnishing information. 

Q.7. For how long anti-dumping duty can be imposed ? 

Ans.7. An anti-dumping duty imposed under the Act unless revoked earlier remains in force for 5 years from the date of imposition. 

Q.8. Is the duty once levied reviewed periodically ? 

Ans.8 The Designated Authority is empowered to review the need for the continued imposition of the anti-dumping duty, from time to time. Such a review can be done suo motu or on the basis of request received from an interested party in view of the changed circumstances. A review shall also follow the same procedures prescribed for an investigation to the extent they are applicable. 

Q.9. Who has to pay this duty ? 

Ans.9 Anti-dumping duty imposed needs to be paid by the importers. 

Q.10. What can be done if the dumping continues or increases? 

Ans.10 Request for review can be made to the Designated Authority. 

Q.11. How is the duty imposed ? 

Ans.11 The Central Government may, within three months of the date of publication of final findings by the designated authority impose anti-dumping duty by notification in the official Gazette, upon importation into India of the article covered by the final findings. 

Q.12. What happens if some information is not made available or if the concerned parties do not co-operate ? 

Ans.12 In case where an interested party refuses access to, or otherwise does not provide necessary information within a reasonable period, or significantly impedes the investigation, the designated authority may record its findings on the basis of the facts available to it and make such recommendations to the Central Government as it deems fit under such circumstances. 

Q.13. Does the Govt. provides any guidance to the domestic industry in filing a petition ? 

Ans.13 The Ministry of Commerce have brought out a brochure. `Anti-dumping-a guide' for the benefit of trade which provides information about the legal as well as procedural aspects of anti-dumping. 

Q.14. What can be done in cases of anti-dumping investigation against the exports ? 

Ans.14 The exporters should make all efforts to provide the information required by the Investigating Authority and to co-operate with them. They can also seek the help of Ministry of Commerce in this regard. 

Q.15. Can the domestic Industry apply for imposition of provisional Anti Dumping duty ? 

Ans.15 A provisional duty not exceeding the margin of dumping may be imposed by the Central Government on the basis of the preliminary finding recorded by the Designated Authority. The provisional duty can be imposed only after the expiry of 60 days from the date of initiation of investigation. The provisional duty will remain in force only for a period not exceeding 6 months, extendable to 9 months under certain circumstances. 

Q.16. Whether Anti Dumping duty is imposed on all the imports ? 

Ans.16 Anti-dumping duty is a source - specific duty i.e. imposed only against dumped imports Anti-dumping duty is imposed on a non-discriminatory basis, applicable to all imports of such articles from whatever sources found dumped and causing injury to domestic industry except in the cases from those sources from which price undertaking has been accepted. 

Q.17. Whether there is any provisions for Appeal against the imposition of Anti Dumping duty. 

Ans.17 An appeal against the order of the Designated Authority may be filed with the Customs, Excise and Gold (Control) Appellate Tribunal within 90 days of the date of the order. 

Q.18. Whether Anti-dumping duty is applicable to imports under Advance licence. 

Ans.18 Anti-dumping duty is not payable on imports on products imported by Advance License holders. 

Safeguard duty : 

The Agreement on Safeguards has come into existence on 1 January, 1995, which authorises importing countries to provide protection to their domestic producers against serious injury caused or threatened to be caused to them by increased imports. The safeguard measures are intended to be applied only for a short duration with a view to allow an opportunity to the domestic produces to adjust to the new situation of competition offered by the increased imports. In India, the Agreement on Safeguards has been implemented recently by introducing a new Section 8B in the Customs Tariff Act, 1975 on 1 March, 1997. The Safeguard Duty Rules have been notified on 29 July, 1997. 

In accordance with the provisions of the Safeguard Duty Rules, safeguard duty can be imposed on any product imported into the country, in such increased quantities, absolute or relative to domestic production, and under such conditions as to cause or threaten serious injury to the domestic producers of like or directly competitive products, irrespective of the source of origin of the imported product. 

The safeguard duties can be imposed for a short duration with the immediate intention of preventing or remedying serious injury to the domestic industry. Such a measure would, however, also require the industry to adjust itself to the new situation of competition offered by the increased imports. A safeguard measure can be imposed only after the Director General arrives at a finding, after due investigation, that the increased imports of particular product(s) are causing or are threatening to cause serious injury to the domestic producers of like-or directly competitive articles. 

An application for initiation of a safeguard investigation can be made by any aggrieved producer/manufacturer, trade representative body, firm or institution, which is representative of the domestic industry. This application should be made in the format issued by the Director General (Safeguards) a copy of which can be obtained from his office or from Industry Chamber and Association and should include information as detailed in Annex to the Trade Notice (along with all supportive evidence/data/annexes) to: 

The Director General (Safeguards), 
5th Floor, `D' Block, I.P.Bhawan, 
I.P.Estate, New Delhi-110 002.