Problems relating to Trade and Investment on India
9. Restrictive export/import trade, duty, and customs clearance |
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Issue |
Issue details |
Requests |
Reference |
| (1) High Import Duty | - Tariffs on clocks and watches are 10% on finished products and 5% on watch movements, and 10% on clock movements, while by enforcement of the Japan-India EPA ratified in 2011, tariffs on clocks and watches originating from Japan are on schedule for removal in 10-years. On the other hand, on top of the basic tariff, GOI continues to levy substantive high tariff rates of countervailing duty (12%), education CESS (3%), and SAD (special additional duty) (4%), amounting substantively to the high tariff Rates, all told. - GOI levies high import duty on multi-function projectors, while zero import duty applies to single-function projectors - High import tariff rates. |
- It is requested that GOI reduces and repeals the tariffs on clocks and watches, and their respective movements. - It is requested that GOJ: -- takes step to confirm and makes available, the latest information toward expansion of ITA; -- provides continually the latest movement concerning the products. - It is requested that GOJ and GOI ratify FTA to reduce the tariff rates. |
- Customs Act |
| (Action) - While India ratified with ASEAN the FTA Framework Agreement in October 2003, agreeing on the early harvest provisions and the scheduled tariff reduction in steps, further talks are proceeding with difficulty over the exclusionary list, rules of origin, etc. - On 20 December 2007, Framework Agreement on Comprehensive Economic Cooperation Between the Republic of India and ASEAN (CECA) was amended to include 539 items (HS 8-digit level) to the list subject to liberalisation. - On 28 August 2008, India-ASEAN FTA was concluded (due for implementation from January 2009). - On 7 August 2008, India-ROK Comprehensive Economic Partnership Agreement (India-ROK EPA) was signed, due for enforcement from January 2010. Pursuant to CEPA, India will repeal import tariff for the tariff items representing 25% of the total tariff items on import from ROK. - On 19 June 2009, GOI promulgated Notification Nos.69/2009, and 70/2009, that would reduce import tariffs in stages, pursuant to Comprehensive Economic Partnership Agreement (EPA) with Singapore. - On 6 July 2009, Pranab Mukherjee, Minister of Finance, India submitted the Federal Budget for 2009-2010 to Lok Sabha, House of the People. The Federal Budget makes no change in the total structure of the tariff rates, with the maximum tariff rate on industrial products retained at 10%, while the central tariff rates of 5% and 7.5% are maintained without change. The sectors where major changes are made on the tariff rates include: machinery, software, medical equipment and consumer products (electronic information products). - On 13 August 2009, GOI signed the ASEAN-India Trade in Goods (TIG) Agreement, which forms a part of ASEAN/India Comprehensive Economic Partnership Agreement (ASEAN-India EPA). TIG is due for enforcement from January 2010. - On 26 February 2010, Finance Minister Pranab Mukherjee released the draft Federal Budget 2010/11 (Draft Budget) at House of the People (Lok Sabha). The Draft Budget extends the export incentive measures, while proposing establishment of Financial Stability and Development Council consigned with the duty to monitor economy and to secure financial stability. It also raises the base rate of the excise duty from 8% to 10% (with certain exceptions). There is no change in the maximum tariff rate. Moreover, it proposes incentive measures that affect a wide range of business activities, including agriculture, environment, medication, and infrastructure. The maximum tariff rate for the majority of products remains at 10%. Concessionary Tariff Rate is 5% for establishment or expansion of the following, while service tax is exempted: -- Frozen storage, chill room, freezer (including the pre-freezer for preservation, storage or transport of apiculture, horticulture, dairy, poultry, aquatic organism, marine product, and other related products), -- Processing equipment for the foregoing products. Environment: GOI applies 5% Concessionary Tariff Rate on machinery, equipment, fixtures, appliance, etc. which are required for initial assembly of solar power generation facilities, while GOI exempts the central excise duty subject to satisfying certain conditions. GOI exempts the basic tariff and special additional duty of customs on geothermal pumps. GOI exempts central excise duty on certain capital goods required for manufacturing rotor blade for wind power plant. Central excise duty for LED light is reduced from 8% to 4%. GOI amends the excise duty rate to 4% on manufacture of electric car (in order to exempt excise duty payable on imported capital goods and the constituent parts. Furthermore, GOI exempts the basic tax and special additional duty of customs payable on materially important constituent parts or partially assembled goods, subject to certain conditions, while it imposes 4% countervailing tariff. The foregoing incentive measures and exemptions are valid up to 31 March 2013. GOI applies 4% excise duty on soleckshaw, developed by Council of Scientific and Industrial Research (CSIR), replacing the conventional rickshaw that solely relies upon human power. GOI exempts basic tariff upon import on compostable (degradable) polymer for fermentation. Infrastructure: GOI applies 5% basic tariff rate on monorail developed under the City Transport Project by affording it "the project import status". On the other hand, GOI accepts payment of import duty after depreciation on certain used machineries deployed for road construction, while it exempts the basic tariff and countervailing tariff on parts for chargers and hands free headphones, in order to encourage manufacture of accessory parts for mobile (cellular) phones. GOI has exempted the basic tariff and special additional duty of customs on all parts, components, accessories, and auxiliary parts for the parts and components thereof, parts and components for manufacture of mobile pone charger, and parts and components for manufacturing hands free headphones subject to certain conditions. Medication: GOI imposes 5% basic tariff and 4% countervailing tariff while exempting special additional duty of customs on all medication equipment. As to parts and accessories used for medication equipment, it imposes 5% basic tariff, while exempting countervailing tariff. GOI continues to exempt basic tariff and countervailing tariff on certain medication equipment (support equipment, rehabilitation equipment, etc.). GOI exempts import tariffs on input materials used for manufacture of implant materials for orthopaedic surgeons, subject to certain conditions. Others: GOI exempts basic tariff on certain input materials and raw materials used for manufacture of sporting goods. GOI reduces basic tariff rate from 10% to 5% on magnetron which is the major component for manufacture of microwave ovens. - Japan-India Comprehensive Economic Partnership Agreement was signed on 16 February 2011 and enforced from 1 August 2011. - Union Budget 2011-2012 of India has withdrawn the exemption to import from basic customs duty of aircraft (8802.20.00, 8802.30.00, 8802.40.00) by non-scheduled operators whether for passenger services or chartered services. This withdrawal has been enforced since 1 March. - On 1 December 2010, Ministry of Finance promulgated Notification No. 135/ 2010 - Customs, providing for the tariff incentive measures under certain conditions for import of specified goods from Indonesia, Singapore, Thai, Brunei, Vietnam, Malaysia and Myanmar pursuant to India-ASEAN Trade in goods Agreement, (enforced from 1 January 2011). - Union budget 2016 incorporates GOI's policy on enhancement of the domestic industrial competitive edge by import tariff rate reduction on IT hardware, capital goods, defence related products, textile products, oil, chemical goods, paper/paper products, aircraft and spare-parts for ships and vessels. |
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| (Improvement) - Special additional duty ("SAD") that had been imposed since 1998 was repealed in January 2005. - On 28 February 2007, GOI announced the 2007 Federal Budget reducing the maximum basic customs duty rate to 10% from the current 12.5% on the majority of non-agricultural products. However, the duty rates for new motor vehicles and motorcycles and used vehicles remain the same at 100% and 60%, respectively. - On 14 September 2007, GOI announced that it would provide an opportunity for concerned parties to seek refund of 4% special additional duty (CVD VAT) under Auricle 3(5) of 1975 Customs Act upon resale of imported goods. (Notification of Central Board of Excise and Customs, Ministry of Finance). - In April 2008, GOI extended until end of May 2009 its measures to: (1) further lower the import tariff reduction rate (normally at about 10% which was reduced to 5%was further lowered to 3%; and (2) deduct certain amounts corresponding to certain percentage of exports from the import tariffs for imported raw materials. - In the 2008 Annual Budget, the basic tariff rates were reduced to certain capital goods, parts and raw materials for which the reduced tariff rates of 5-7% are applied, while the maximum tariff rate of 10% was retained. - While the maximum tariff rate remains unchanged at 10% in the 2009 Budget, the tariff rate on LCD panel has been reduced from 10% to 5%. - On 19 February 2009, GOI released Notification No. 14/2009-Customs listing the items on which import tariffs are exempted under the high-tech export promotion scheme. - GOI has reduced the basic tariff rate of watch movement down to 5%. - In February 2011, Japan-Indian EPA was signed and the Agreement has been enforced since 1 August 2011. - While household electric appliances such as laundry machines, refrigerators, and air-conditioners are excluded from the tariff repeal, tariffs will be reduced in stages in 10-years on certain air-conditioners and television receivers It is the same with clocks, lithium ion batteries, DVD players, and video cameras. The Staged Tariff Reductions are as follows: (Base rate is 10%) 2011------2012------2013------2014-----2015------2016------2017------2018-----2019------2020------2021 9.1%------8.2%------7.3%------6.4%----5.5%------4.5%------3.6%-----2.7%------1.8%-----0.9%------Free Moreover, tariffs will be repealed over the span of 10-years on copiers and printers as per the following schedules: (Base rate is 7.5%) 2011------2012------2013------2014-----2015------2016------2017------2018-----2019------2020------2021 6.8%------6.1%------5.5%------4.8%-----4.1%-----3.4%------2.7%-----2.0%------1.4%------0.7%-----Free Tariff will be repealed in five-years on steel products (hot-rolled, cold-rolled, alloys, zinc plated steel plate) as the following schedules: (Base rate is 5%) 2011------2012------2013------2014-----2015------2016------2017------2018-----2019------2020------2021 4.5%------4.1%------3.6%------3.2%----2.7%------2.3%------1.8%-----1.4%------0.9%------0.5%-----Free - According to the Union Budget of India promulgated on 28 February 2011, the maximum rate of basic duty remains at 10%, provided, however, that basic duty rates pegged at three steps, 2.0%, 2.5% and 3.0% have been lumped together into a single step of 2.5%, which has been enforced since 1 March 2011. - The Union Budget 2011-2012 India sets forth duty exemption measures by industry. In the electronic industries basic duty is exempted from (1) reinforced glass and silver paste for manufacturing solar battery and solar batter module, (2) glass tube cartridge fuse, ceramic tube fuse, glass tube (2-4mm diametre, with blade shaped fuse) for manufacturing PPTC resettable fuse, (3) para-nitro-benzin alcohol for manufacturing aluminium electrolytic capacitor, (4) insulated polyester tape for manufacturing degaussing coil and other coil parts, and (5) aluminium and copper coated aluminium wire with more than 99.9% purity and less than 3 minimum in diametre for fabricating deflection yoke for colour picture tube, etc. which are imported for use as input materials for manufacturing specified products. Enforced from 1 March. - In February 2011, Japan-India EPA was signed. The Agreement encompasses trade in goods, rules of origin, trade in service, movement of natural person, investment, IPR, cooperation, overhaul of business environment and TBT-SPS areas. In trade in goods, Indian side will repeal customs duty in 10 years from the effective date of the agreement on about 90% (about 97% as to Japan's side) in amounts of import from Japan, major liberalised items on the Indian side include car parts such and engine parts, video camera, DVD player, electronic products such as lithium ion batteries, tractors, bulldozers, industrial machineries such as industrial robots, whose Basic Duty (in the range of 7.5%-10%) will be reduced in stages in 10-years from the effective date of the agreement, provided, however, that major items such as finished cars are excluded from the scope of the basic duty removal. As to goods imported into Japan, state trade items such as rice, wheat, and meat, and veneer, aquatic products under import quota are excluded from the duty exemption. It is reported that the bilateral trade between India and South Korea has jumped by 40% in one year after the effective date of India-South Korea Comprehensive Economic Partnership Agreement India-ROK EPA, which is ahead of Japan-India EPA in certain areas in terms of duty rates. - On 27 April 2012, Ministry of Finance of India (MOF) promulgated Circular No.28/2012, concerning application of the concessionary tariff rates upon goods imported from Japan under "the Comprehensive Economic Partnership Agreement between Japan and the Republic of India (Japan-India EPA)". The HS numbers of the subject goods classified under Chapters 72, 73, 84, 85, 87, 90 and 91 of amended concessionary tariff list in Annex I of No.28/2012 may be accessed at: (http://www.jmcti.org/trade/bull/trade/alert/arti/2012_05/AnnexI_India-JapanCEPA_Selec_HS_Chapters.pdf) - On 8 June 2012, Second Protocol to amend The Framework Agreement for Establishing Free Trade Area between India and Thailand (The second protocol FAFTA) entered into force. The Second Protocol expands the scope of the early harvest subject goods under TIFTA to 82-items, such as tropical fruits, home electric appliances, auto-vehicle parts, etc. including the newly added 2-door type home freezer/refrigerator (HS8418.10). - Since 1 January 2016, Ministry of Finance, India, has implemented reduction of concessionary tariff Rates on specified products (under HS87, i.e., diesel engine, semi-diesel engine and gearbox/parts thereof) pursuant to Japan/India Comprehensive Economic Partnership Agreement (CEPA). |
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| (2) Stringent/ Complex Basis for Certificate of Origin under FTA Origin Rules | - The Basis of determining country of origin under Japan/India FTA (CEPA) requires satisfaction of both criteria, namely, change in tariff heading and added value requirements, which are more rigorous than other FTA's. Because of this, MFS is neither able to satisfy the origin qualifications nor to benefit from the preferential tariff rates. - It takes much work-time to satisfy both "Regional Value Content (RVC) and Change in Tariff Classification (CTC)" requirements relative to filing application for origin certificate under Japan-India CEPA. |
- It is requested that GOI/GOJ deregulates the country of origin requirement so that satisfaction of either requirement, change in tariff heading or added value will suffice for application of preferential tariff rates. - It is requested that GOI deregulates the judgement basis for certificate of origin qualification so that either RVC or CTC suffices the requirements for origin determination, after the fashion of Japan/each EPA member state, Japan/Australia EPA, etc. |
- Japan/India Comprehensive Economic Partnership Agreement |
| (Action) - On 15 May 2014, Ministry of Commerce & Industry, Department of Commerce, and Directorate General of Foreign Trade, by Public Notice No. 59 announced the Latest List by the issuing authority of Preferential/Non-Preferential Certificate of Origin. Export Inspection Council (EIC) is mandated to issue certificate of origin under ASEAN/India FTA (AIFTA), India/Thailand early harvest scheme (EHS) India-Japan Comprehensive Economic Partnership Agreement (India-Japan EPA) -- Ministry of Commerce & Industry, Department of Commerce, Directorate General of Foreign Trade, Public Notice No. 59 (http://dgft.gov.in/Exim/2000/PN/PN13/pn5913.htm) |
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| (3) The Requirement to fill in the Full Price Details | - In regard shipment to India of a free sample machine parts (for verification purposes) with a nominal value duly stated on the invoice, the Indian customs requires production of additional official letter that gives the full cost details (such as assembly cost and parts cost). It gives heavier burdens upon the member firm for consigning the local development in India of the machineries and equipment. | - It is requested that GOI accepts import of the sample equipment at nominal value exported from Japan. | |
| (4) Import Duty Levied on Products Temporarily Imported for Sales Meetings | - GOI levies high import duty on goods imported for demonstration, sales promotion for a short-term (less than 6-months). Only partial refund of import duty is available after completion of demonstration or sales promotion. If the demonstration unit is not new, a separate declaration is necessary, stating expressly the goods are for the purposes of sales demonstration. |
- It is requested that GOI grants minimum import duty or duty exemption for equipment that is brought into India for demo within a specific period. - It is requested that GOI simplifies the import procedures of used machineries for sales promotion. |
- Union Budget |
| (5) Complex Procedures for Tariff Refund | - Import duties on export products are refundable, subject to production of the vast amount of particulars (the purchase record of over 1000 pages), required for each introduction of new models. It necessitates a vast amount of clerical workload. | - It is requested that GOI makes productive, the preferential treatment on Export Business. | |
| (6) Nebulous Restrictions on Import of Used Machineries and Equipment | - Our member firm wishes to confirm the details of import restrictions on used machineries and its future (or verification on the legal side for business possibility on used machineries). | - It is requested that GOI provides the confirmed latest information. | |
| (7) Complex, Much Delayed Issuance/ Renewal of SVB Licence. | - Member Firm's Subsidiary (MFS) incurs much work time for both acquisition and renewal of SVB (Special Valuation Branch) Licence (SVBL), the issuance base is not clear, apparently left to the arbitrary judgement of the competent authority. As a result, MFS's performance suffers negative impact from the prolonged refund of the bond (equal to 1% of the import amount) deposited upon import. - SVBL renewal in every three years takes time. The applicant's submission of the requisite renewal documents, accompanying bond deposit of 1% on CIF price, does not trigger an immediate action. They are left on the shelf for 1 to 2-years, impacting heavily upon cash flow of the applicant. |
- It is requested that GOI takes step to: -- clarify the basis for the SVBL issuance, and shortens its requisite acquisition time, and -- minimise the room for an official's arbitrary judgement. - It is requested that SVB authority expedites the SVBL renewal procedures. |
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| (8) Complexity and Difficulty in Declaring and Marking Maximum Retail Price upon Import Customs Clearance | - MRP (maximum retail price) marking requirement. It requires the workload of labeling MRP on the package in the originating location of the products. - Compulsory requirement for declaration and marking of MRP at customs clearance is complex and difficult. Its marking work is quite burdensome at factory, etc. Moreover, the need to synchronise prices at production time and at customs clearance means additional burden. - GOI requires both MRP labeling and food labeling also on import(s) of samples for the specific purposes of market research and/or analysis. GOI compels shipping back to the originating country all the imports without the requisite labelings. |
- It is requested that GOI repeals the MRP marking system. - It is requested that GOI exempts the legal labeling requirements on the sample products imported for the specific purposes, excluding marketing. |
- Weights and Measures Act - Related to Customs Tariff Act |
| (Action) - Since February 2010, after introduction of measures for deduction of SAD (4%) on goods, which are imported into India in packaged condition as finished products, the Customs Authority has tightened its control on import of finished products. Due especially to the Customs Authority's stringent measures to monitor imported cargoes, increasing numbers of imported cargoes without proper labeling are held at Customs. (2011 Report on Compliance by Major Trading Partners with Trade Agreements -WTO, FTA/EPAs, BITs-) - Notification No,44 of Ministry of Commerce and Industry dated 24 November 2000 compels labeling of maximum retail price, importer's name, etc. on each individual package of imported goods. |
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| (9) Complex and Delayed Customs Clearance Procedures | - It takes quite a long time to complete import customs clearance, 20-days in average. - The venue for the customs clearance has been moved from container yard (CY) to ICD (Inland Container Depot)/CFS (container freight station). As a result, shippers incur drayage all the time. - After establishment of the new administration, the customs clearance takes a longer lead-time, from the previous two weeks to maximum 1.5 months, now. |
- It is requested that GOI streamlines the customs clearance procedures. - It is requested that GOI: --clearly identifies the requisite lead-time for completing customs clearance, and --completes the customs clearance by the regular stable procedures. |
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| (Action) - On 14 March 2013 GOI promulgated Public Notice No.55 (RE-2013/2009-2014) "Introduction of Online Export Obligation Discharge Certificate (EODC) / Redemption for Advance Authorization (AA) and Duty Free Import Authorization (DFIA)" (due for enforcement from 1 June 2014). - On 23 October 2015, Ministry of Finance promulgated, for enforcement from 1 January 2016, Circular No. 26/ 2015-"customs of digital signature for submission of documents", which compels the use of digital signature on the customs clearance documents. - On February 17 2016, India ratified the WTO Trade Facilitation Agreement (TFA). |
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| (Improvement) - In the EXIM for the FY 1999, as many as 894 items were liberalized, while 414 items were shifted to the category requiring the special import license. As a result, import licenses are required on the 667 items. - On 11 April 2000, the QR's on imported goods were repealed on the 714 items. - On 12 March 2001, Minister Maran released the new EXIM for 2001 FY (April 2001-March 2002), repealing the quantitative restrictions ("QR's") on 715 items of consumable goods (textiles - 342 items, alcoholic drinks - 147 items, others - 226 items). Concurrently with the repeal of the QR's, the special import licensing system ("SIL"), that authorised import of the specified products commensurate with the export performance, was also repealed. However, certain items from the 715 items have been shifted to another tariff classification, which authorises imports only to the national industries. In this sense, India has not yet achieved the total liberalization. - On 31 March 2001, GOI repealed the QR's on durable consumer goods (including automotive vehicles). - On August 31 2001, DGFT published Notification No.7, which authorised a free import of certain items, if they are classified as being in SKD/CKD conditions, pursuant to the ongoing EXIM. - On 1 April 2002, GOI repealed the QR's imposed on the 50 items for the national security reasons. - By the amended EXIM published on 31 March 2003, GOI repealed import QR's on the 69 items (including without limitation, certain photographic products, products for motion pictures, video CD, DVD, laser disk, agricultural products, and medication goods) - On 20 August 2010, Central Board of Excise & Customs, Ministry of Finance (CBEC) promulgated Circular No. 29/2010-Customs applicable to status holders under the Accredited Clients Programme (ACP) such as export houses/trading houses that meet certain conditions. Export house status is granted to enterprises who exported more than 2 billion Rs (in FOB prices) in the previous financial year and in the last 3 years, while trading house status is granted to enterprises who exported more than 5 trillion Rs (in FOB prices) in the previous financial year and in the last 3 years. ACP is a measure to guarantee smooth customs clearance to importers who have shown their competency and intention to observe the Customs Act. Importers registered as accredited clients are classified in a category different from general importers and a smooth customs clearance is guaranteed to them. Practically, customs clearance will be made based upon the importer's self-declaration prepared and filed by the accredited clients themselves, while physical inspection is exempted on the import cargoes. Export houses and trading houses in export business were excluded from the application of ACP when it was introduced on 24 November 2005. - On 29 July 2011, CBEC promulgated Circular No. 33/2011-Customs on "Making E-payment of Customs duty mandatory, regarding payment of certain import customs duty". This Circular will compel E-payment to importers paying more than Rs100,000, with the express purpose of saving the transaction cost and expedite the customs clearance. Moreover, E-payment is the only means available for payment of customs duty to the customs accredited clients under the Customs Accredited Client Program, regardless of the amount of payment. |
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| (10) Ambiguous Judgement Basis of Goods subject to Import Restrictions | - While hot dip galvanized steel is subject to import control under Bureau of Indian Standard (BIS), from time to time, Indian customs suspends customs clearance for a steel of substantially different type (precisely, specially developed highly corrosion-resistant steel sheets coated with zinc, magnesium, aluminum, silicon), deeming it as hot dip galvanized steel. | - It is requested that GOI determines the applicability of BIS strictly in accordance with the exact specifications of the imported products incorporating special materials (which are incapable of local production in India), instead of substituting incorrectly the BIS specifications. | - Steel and Steel Products (Quality Control) Order, 2008. |
| (11) Excessively Rigorous Cargo Inspection | - Air cargoes are subjected to customs inspection at the ratio exceeding 80%. It prolongs the lead time for cargo delivery and frequently damages the cargo. | ||
| (12) Disheveled Handling of Customs Unpacking for Inspection | - A member firm's machine met with a customs inspection. The inspector roughly hammered down and unpacked the wooden case with the machine inside, without restoring the vacuum packing and the wooden case back to the original state after inspection. In transit to the customer's factory, rainwater seeped inside the wooden case, badly damaging the machine, so that upon arrival, it was unusable, badly covered with rust and corrosion. | - It is requested that Customs Inspector: -- carefully open the wooden case to the minimum extent needed for inspection, and thereafter, -- restore the opened area adequately back to the original condition. |
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| (13) Abuse of Antidumping Measures | - On 5 December 2002, GOI made the final affirmative determination to impose antidumping duty on cold-rolled stainless steel sheet (of more than 600 minimum width) from EU, Japan, the U.S., and Canada. - On 25 November 2005, GOI imposed the antidumping duty as mentioned above (of $305 and $445.69 per ton, as a result of the mid-term review). - In December 2006, GOI decided to continue the antidumping measures. - In November 2008, GOI instituted antidumping investigation on cold-rolled stainless steel plate (600 mm in width or more) against EU, Japan, U.S., PRC, South Korea, South Africa, Taiwan and Thailand. - In November 2008, GOI initiated Antidumping Investigation on hot rolled steel plate from Japan, PRC, Indonesia, Iran, Kazakhstan, Malaysia, Philippines, Rumania, Russia, South Africa, Saudi Arabia, South Korea, Thailand, Turkey and Ukraine. |
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| (Action) - On 11 June 2009, Directorate General Of Safeguards (DGS) of GOI notified WTO of its recommended invocation of the provisional safeguard measures on imported hot rolled steel coil/sheet/band (HS7208), acrylic fibre, coated paper, and paperboard. The date and the period of the invocation of the measure remain undecided. Moreover, on 11 June 2009, it notified WTO of its recommended invocation of the provisional safeguard measures on imported crankshaft for commercial vehicle (truck). - 2011 ROCMTP points out in regard to GOI's antidumping investigation that: (1) Judgement basis is obscure for calculating injury margin under the lesser duty rule, (2) the data for the 15-items requiring the authority's consideration under Article 3.4 of the WTO Antidumping Agreement are not exhaustively listed in the final decision for injury determination. (3) The antidumping investigation period varies from case to case, and (4) as regards Antidumping Agreement Article 12.2, there are cases where it is unclear if adequate notice is given to interested parties on preliminary decision, final decision and repeal of antidumping duty imposition. (2011 Report on Compliance by Major Trading Partners with Trade Agreements -WTO, FTA/EPAs, BITs-)(ROCMTP) - WTO Panel released its Report DS436 in regard to the U.S. imposition of countervailing duties on certain hot rolled carbon steel flat products that the U.S. imported from India. WTO's finding is bifurcated. While the report partially supports the GOI's contentions, it has rejected the GOI's contentions over the major systematic issues, relative to the U.S. countervailing duty. (Note) On 12 April 2012, GOI requested set up of WTO Panel for consultation, alleging the inconsistency with each provision of the WTO SCM Agreement (Agreement concerning Subsidies and Countervailing Measures). -- WTO Panel Report: (http://www.wto.org/english/tratop_e/dispu_e/cases_e/ds436_e.htm) - On 11 April 2016, directorate general of anti-dumping & allied duties, ministry of commerce and industries of India initiated antidumping investigation on alloy and non-alloy steel hot rolled flat roll products, originating in or exported from China PR, Japan, Russia, Korea, Brazil and Indonesia. |
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| (Improvement) - On 5 December 2002, final affirmative decision for imposition of antidumping duty on cold-rolled stainless steel sheet (600mm wide and above) from EU, Japan, USA and Canada. On 25 November 2005, antidumping duty mentioned above has been imposed (U.S.$305 and U.S.$ 445.69 after mid-term review). In December 2006, antidumping measures were repealed. In November 2008, new antidumping investigation was instituted on cold-rolled stainless steel sheet (600mm wide and above) from Japan, PRC, Indonesia, Iran, Kazakhstan, Malaysia, the Philippines, Romania, Russia, South Africa, Saudi Arabia, South Korea, Thailand, Turkey, and Ukraine. On 24 November 2009 (Improvement) GOI excluded Japan from the final affirmative determination due to the minimal volume of import from Japan and absence of resulting injury therefrom, while imposing antidumping duties in the range of U.S.$ 12.74-2,254.69/MT on imports from the other 14-countries. In November 2008, GOI initiated antidumping investigation on hot-rolled steel plate from Japan, PRC, Indonesia, Iran, Kazakhstan, Malaysia, the Philippines, Romania, Russia, South Africa, Saudi Arabia, South Korea, Thailand, Turkey, and Ukraine. In August 2009, GOI discontinued the investigation upon request of the petitioner. On 24 November 2009, GOI excluded Japan alone on the ground of small quantity involved and no resultant damage. Antidumping duty levy in the range of USD12.74-2,254.69/MT was decided on the remaining 14-countries. |
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| (14) Safeguard Measures | - On 9 April 2009, GOI instituted official safeguard investigation on hot-rolled steel plate (up to 20mm in thickness and 2000 mm in width, included in HS7208). | - GOI discontinued investigation, excluding Japanese steel products from the subject goods of investigation. | |
| (Action) - On 8 December 2009, the Board recommended the Central Government not to impose the safeguard duty (on the ground that the petitioner did not constitute "the domestic industry" and injury determination could not be made for the petitioner's failure to submit the relevant information requisite to make injury determination.) - On 22 April 2013, GOI initiated safeguard measures investigation on seamless steel pipe. - On 7 December 2015, directorate general (safeguard) initiated the safeguard investigation on alloy/non-alloy hot rolled steel plate. - On 15 March 2016, directorate general (safeguard) made final affirmative finding on the safeguard investigation on non-alloy hot rolled steel plate and alloy wire-net coil (600 minimum or more in width). |
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| (15) Export Embargo | - On 7th October, Kartanaka State Government embargoed export of iron ore, on the ground of preventing illegal mining. It has given substantial impact on the marine surface trade of iron ore, and has triggered the spiraling market prices. - In September 2012, Goa State Government, Central Government and Supreme Court executed production/export embargo on iron ore. It heavily impact ocean-marine trade of iron ore, and is a factor to push up market prices radically. |
- It is requested that GOI repeals the export embargo on iron ore. - It is requested that GOI lifts the production/export embargo. |
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| (16) Export Tax Levy | - On 28 February 2007, Ministry of Finance (MOF) announced (and enforced from 1 March 2007) the across-the-board tax levy of 300 Rs per ton on export of iron ore, in order to secure tax revenue and to preserve the Indian domestic iron ore resources. (The tax levy was enforced from 1 March.) During May 2007-December 2009, GOI changed its tax system for five-times as follows: -----------------------------Lump Ore-------------------Fine ore 3rd May 2007-------------No change-----------------50 Rs/ton (Down) 13 June 2008--------------15% on FOB (Up) 31 October 2008----------No change----------------200 Rs/ton (Down) 7 December 2008---------5% on FOB (Down)-----removal (Down) 24 December 2009-------10% on FOB (Up)-------5% on FOB (Up) 29 April 2010-------------15% on FOB (Up)-------5% on FOB (No change) 28 February 2011--------20% on FOB (Up)------20% on FOB (Up) 30 December 2011-------30% on FOB (Up)------30% on FOB (Up) Export tax imposed on iron ore is a heavy burden to iron ore suppliers, while a portion of the tax burden is passed on to the users of iron ore such as Japan in the form of increased FOB prices. |
- It is requested that GOI repeals the levy of export tax on iron ore. | |
| (Action) - In July 2008, Ministry of Steel (MOS) requested suppression of export on rolled coil, etc. that serve as base material for steel plates at a meeting with the heads of steel manufacturers. At the same time, maximum 10% reduction in price was agreed on certain products. Underlying reason for this agreement is about 50% increase last year in the domestic steel prices in India. - On 7 December 2008, the Central Government notified that the impositions on iron ore would be deducted from the total duty amount imposed upon export from India. (Notification No. 129/2008) - Union Budget 2011-2012 raises export duty on Lump Ore and Fine Ore (15% and5% respectively) to 30% across the board, while removing completely export duty for iron pellets. - Second Schedule of Customs Tariff Act 1975, (Act No 51 of 1975), is rewritten along with addition of new tariff items to Harmonised System of Nomenclature. Newly added item includes non-fat rice bran cake on which 10% export duty is levied (enforced from 1 March 2011). Export duties on Lump Ore and Fine Ore (15% and 5% respectively) have been raised to 20% across the board, while export duty for iron pellets has been removed completely. |
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| (17) Complex Products Registration Procedures | - Products registration procedures are complex. | - It is requested that GOI repeals the renewal requirement for product registration, as it is done in Japan: Once registered, no subsequent renewal is necessary. | |
| (18) Delayed Export Procedures | - It takes a long time to complete the formalities on export from India: For example, 3-6 months for free shipment, 2-3 weeks for shipment at cost. |
- It is requested that GOI cuts down the period of time necessary to complete the export formalities. | |
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