Transcript Sunset
By A K Gautam, Director Directorate General of Anti-dumping and Allied Duties Department of Commerce Govt. of India 1 SUNSET REVIEW PRESENTATION ON INDIAN PRACTICES By A K Gautam, Director Directorate General of Anti-dumping and Allied Duties, Department Of Commerce, Govt. of India 2 SUNSET OR EXPIRY REVIEW • Article 11.3 - Definitive ADD shall lapse five years from the date of imposition. • Such duty may be extended if the authorities initiates a review proceedings called sunset/expiry review before the expiry of 5 years of imposition of duty. • The existing duty may remain in force pending the outcome of the review. • The authority determines that the expiry of the duty would be likely to lead to continuation or recurrence of dumping and injury. • The duty determined in such review remains valid for another 5 years. 3 INITIATION OF REVIEW • Upon a request of the domestic industry : - the request must be duly substantiated and - filed within a reasonable time prior to expiry of the imposition of definitive duty. • The Sunset Review shall normally conclude within 12 months of initiation. • The provisions of article 6 regarding evidence and procedure shall apply to sunset review also. • On own initiative of investigating authorities. 4 FOCUS ON SUNSET REVIEW • The focus is on the likelihood of the continuation or recurrence of : - dumping, and - injury. • assessment of factors that may indicate that the domestic industry is likely to be materially injured again in the event of expiry of duty. 5 LEGAL PROVISIONS UNDER INDIAN LAWS • Section 9A(5) of the Customs Tariff Act,1975 - a) The anti-dumping duty imposed shall, unless revoked earlier cease to have effect on the expiry of five years from the date of such imposition. b) If the Central Govt., in a review, is of the opinion that the cessation of such duty is likely to lead to continuation or recurrence of dumping and injury, it may, from time to time extend the period of such imposition for a further period of five years. c) Such further period shall commence from the date of order of such extension. 6 • If the review initiated prior to the expiry of 5 years has not come to a conclusion before such expiry, the duty may remain in force pending the outcome of such review for a further period not exceeding one year. • Rule 23 of Customs Tariff (Identification, Assessment and Collection of Anti-dumping Duty on Dumped Articles and for determination of Injury) Rules,1995 provides that the provisions of rules 6,7,8,9/10,11,16, 17,18,19 and 20 shall be mutatis mutandis applicable in the case of review. 7 PROCEDURE FOLLOWED IN SUNSET REVIEW IN INDIA • A duly substantiated request by or on behalf of the domestic industry. • that the expiry of duty would likely to lead to continuation or recurrence of dumping and injury. • Request is received within reasonable time prior to expiry of 5 years of the definitive duty. 8 EXAMINATION OF THE REQUEST • Initiation of review after examination of the request with regard to : a) Continued dumping and injury or b) Removal of injury is partly or solely due to the existence of measures, or c) The position/market conditions of the exporters indicate likelihood of further injurious dumping. • Review is normally completed within 12 months. • The Authority may also initiate a sunset review on its own where warranted. 9 LIKELIHOOD TEST: CONTINUATION OR RECURRENCE OF DUMPING • Examination of imports – Period of Investigation & 3 preceding years. • Evidence of dumping by the exporters to third countries is also looked in to assess likelihood of dumping. • Freely disposable capacities available in subject countries. • Evidence of duty absorption is also looked into to assess likelihood of dumping. • Determining dumping margin for the POI. 10 CONTINUATION OR RECURRENCE OF INJURY • Assessment of the economic condition of the domestic industry during the POI and 3 preceding years . • Assessment is made on the condition of the domestic industry during POI and effectiveness of the measures in force by analysing both dumping and injury. • Assessment of the impact of the duty in force on their economic parameters viz. production, market share, profitability, capacity utilisation, sales etc. of the DI. • If the Authority finds that dumped imports continue to injure the Domestic Industry, it may infer that the ‘expiry of measures’ would only lead to a further deterioration of an already weakened DI. 11 While examining the volume of dumped imports, the authority also considers whether there has been a significant increase in the dumped imports either in absolute terms or relative to production or consumption in India. With regard to the effect of the dumped imports on prices, the authority considers whether there has been a significant price undercutting by the dumped imports and whether the effect of such import is otherwise to depress prices to prevent increase which otherwise would have occurred. The authority also looks into the evidence of production capacity of the exporters, export profile, likelihood of increased dumping to Indian market considering the availability of other export markets to absorb 12 SOME PARAMETERS CONSIDERED IN SSR • Significant Price undercutting by imports even with duty in force. • Affirmative findings of continued dumping. • Level of current dumping margin during Period of Investigation. • Current injury during Period of Investigation or vulnerability of domestic industry. • Surplus production capacity of exporters. • Significant market share of dumped imports. 13 Parameters considered (contd.) • • • • Increase in volume of dumped imports. Increase in market share of dumped imports. Evidence of duty absorption in case of fixed duty. Third country anti-dumping measures on the same merchandise from the same sources. 14 SOME ISSUES FOR DELIBERATIONS Certain issues are raised in view of varying practices by different authorities : • What are the various methods available for establishing likelihood of dumping in SSR where there was no import from subject country/countries during POI. ? • Where no dumping- margins are found during SSR. Whether ‘likelihood of injury’ test will still apply or measure shall be terminated? • Whether the assessment of dumping and injury shall always be done for the POI and likelihood test applied on such assessment or current (post-POI) volume of imports and its effects on prices and other economic parameters be evaluated and likelihood test applied thereafter? • Whether there is a need for an indicative list of factors15that authorities should consider while considering SSR? THANK YOU 16