Article
ADD and CVD on goods removed from SEZ to DTA – ‘Missing link’ filled by Finance Act, 2021
By Jayant Raghu Ram
The article in this issue of International Trade Amicus discusses the recent amendments by the Finance Act, 2021 in the Customs Tariff Act, 1975 to allow imposition of anti-dumping duty (‘ADD’) and countervailing duty (‘ CVD’) on goods removed from a Special Economic Zone to the Domestic Tariff Area. Studying the provisions of SEZ Act and the Customs Tariff Act, the article notes that before the amendment by the Finance Act, 2021, while an EOU paid ADD on the imported raw material when cleared as part of the finished goods, to the DTA, but a SEZ removing finished goods into DTA was not liable to such duty. It also notes that no CVD was leviable on goods cleared into the DTA either by a SEZ unit or an EOU. The article observes that the Madras High Court in the decision of Flextronics Technologies India (Pvt.) Ltd. v. State of Tamil Nadu had tacitly identified the ‘missing link’ in the framework for the imposition of customs duties on goods removed from a SEZ to the DTA. Observing that the ‘missing link’ has now been filled by enactment of the Finance Act, the author states that this is a positive step in improving the coherence of the legal framework concerning SEZs and EOUs and will also strengthen the ‘Make in India’ programme by affording necessary protection to the domestic producers...
Trade Remedy News
- 1-phenyl-3- methyl-5- pyrazolone from China PR – India imposes definitive anti-dumping duty
- Axle for Trailers from China PR – India initiates sunset review of anti-dumping duty
- Barium Carbonate from China PR – India extends anti-dumping duty till 20 October 2021
- Clear Float Glass of nominal thicknesses ranging from 4mm to 12mm from Malaysia – India’s Ministry of Finance decides not to impose countervailing duty as directed by DGTR.
- Cold Rolled/cold reduced flat steel products of iron or Non-Alloy Steel, or other AIlov Steel of all width and thickness, not clad, plated or coated from China PR, Japan, Korea RP and Ukraine – India initiates sunset review of anti-dumping duty
- Common Alloy Aluminium Sheet from India – USA issues anti-dumping duty and countervailing duty orders
- Copper & Copper alloy flat rolled products from China PR, Korea RP, Malaysia, Nepal, Sri Lanka, and Thailand – Indian DGTR recommends definitive anti-dumping duty.
- Flexible Slabstock Polyol of molecular weight 3000-4000 from Saudi Arabia and United Arab Emirates – India imposes anti-dumping duty.
- Fluoro Backsheet from China PR – India initiates anti-dumping investigation.
- Hot-Rolled flat products of alloy or non-alloy steel from China PR, Japan, Korea RP, Russia, Brazil and Indonesia – India initiates sunset review of anti-dumping duty.
- Melamine from China PR – India further extends anti-dumping duty till 30 September 2021.
- Normal Butanol from EU, Malaysia, Singapore, South Africa and USA – India continues anti-dumping duty after sunset review.
- Nylon Filament Yarn (multifilament) from EU and Vietnam – India expands exclusion of specific product from anti-dumping duty.
- Organic Soybean Meal from India – USA initiates countervailing duty and anti-dumping duty investigations.
- Plain medium density fibre board having thickness less than 6 mm from Vietnam, Malaysia, Thailand, and Indonesia – India’s DGTR recommends imposition of definitive anti-dumping duty.
- Polytetrafluoroethylene (PTFE) from Korea RP – India extends anti-dumping on goods from Russia to goods from Korea RP.
- Polytetrafluoroethylene (PTFE) products from China PR – India imposes anti-dumping duty consequent to anti-circumvention investigation.
- Raw honey from India – USA initiates preliminary phase anti-dumping and countervailing duty investigations.
- Rubber Chemicals – TDQ from China PR, EU and Russia, PVI from China PR, and CBS from China PR and EU – India initiates anti-dumping investigation
- Styrene Butadiene Rubber from Korea RP – India’s Ministry of Finance decides not to impose countervailing duty as directed by DGTR
- Toluene Di-Isocyanate from EU, Saudi Arabia, Chinese Taipei and United Arab Emirates – India imposes definitive anti-dumping duty from date of provisional duty
- Utility scale wind towers from India – USA issues preliminary affirmative countervailing duty determination
WTO News
- India’s mandatory ‘non-GM cum GM free certificates’ for food imports questioned by USA
- GCC’s selective tax on sweetened drinks questioned in Committee on Market Access.
India Customs & Trade Policy Update
- Anti-dumping sunset review – Time lines revised for filing applications
- India-Japan CEPA – Deeper tariff concessions notified
- India-Mauritius CECPA effective from 1 April 2021 – Rules of Origin and tariff notification notified
- Copper and Aluminium – Mandatory registration of imports of certain products
- Melon seeds – Import restricted
- Mosquito killer racket – Import prohibited if CIF value less than INR 121 per racket
- Remdesivir injection and API – Export prohibited
- Verification of identity of exporters, importer or Customs broker – New Regulations notified
Ratio decidendi
Classification of parts and accessories of toys in Chapter 95 – Chapter Note 3 on sole or principal use – ‘Suitable for use’ and ‘principally suitable for use’ - United Kingdom’s Upper Tribunal (Tax and Chancery Chamber)
