INDIA Trends and Developments Contributed by: Arvind Sharma, Ajoy Roy, Sanjiv Malhotra, Shahana Chatterji and J.V. Abhay, Shardul Amarchand Mangaldas & Co.
or threatens to cause material injury to the Indi - an domestic industry. Anti-dumping duties are governed by Section 9A of the Customs Tariff Act read with the Customs Tariff (Identification, Assessment and Collection of Anti-Dumping Duty on Dumped Articles and for Determination of Injury) Rules, 1995. The investigation and procedural steps are as follows. • The Directorate General of Trade Remedies (DGTR) initiates an investigation upon receiv - ing a duly substantiated application from a domestic business, establishing prima facie evidence of dumping, injury, and causal link. • A public notice of initiation is issued, inviting all interested parties to participate and submit relevant information within stipulated time - lines. • The DGTR circulates questionnaires to known exporters, producers, and importers to gather data. • The authority conducts a detailed examina - tion of the: (a) normal value (price in the exporting coun - try); (b) export price (price at which goods enter India); (c) dumping margin (difference between the above); (d) injury to domestic industry; (e) causal link between dumping and injury; and (f) other relevant factors. • In some cases, verification visits may be conducted at the premises of foreign export - ers or domestic producers to confirm data submitted. • Parties are afforded the opportunity to pre - sent their views in oral hearings.
The duration (and review) of anti-dumping meas - ures is as follows. • Initial tenure: anti-dumping duties are valid for five years from the date of imposition. • Mid-term review: initiated to re-examine duty parameters due to significant changes in mar - ket conditions or cost structures. • Sunset review: conducted before expiry to assess the likelihood of continued dumping and injury and the review may result in exten - sion of imposition of the anti-dumping duties. • New shipper review: permits new exporters, who were not party to the original investiga - tion, to obtain separate duty rates. Subsidies and countervailing measures Countervailing actions are governed by Sections 9, 9B and 9C of the Customs Tariff Act and the Customs Tariff (Identification, Assessment and Collection of Countervailing Duty on Subsidized Articles and for Determination of Injury) Rules 1995, enacted to determine the manner in which the subsidised articles liable for countervailing duty are to be identified, the manner in which the subsidy provided is to be determined and the manner in which the duty is to be collected and assessed under the Act. Safeguard measures The domestic legislation to implement the safe - guard measures has been enacted under Sec - tion 8B of the Customs Tariff Act read with the Customs Tariff (Identification and Assessment of Safeguard Duty) Rules, 1997. While the proce - dural steps largely mirror those for anti-dumping investigations, safeguard measures differ in that they address fair but injurious import surges and must be imposed on a non-discriminatory basis.
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