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07 August 2023

International Trade Amicus: June 2023

Article

India loses the fight for electronic goods against EU at the WTO
By Rizwan Shah

The WTO panel recently ruled against India’s import duty measures in relation to certain Information and Communication Technology (‘ICT’) goods, holding the measures as inconsistent with Articles II:1(a) and (b) of the GATT 1994. The article in this issue of International Trade Amicus analyses the critical arguments raised by India to defend its position and the panel’s ruling thereon. Elaborately discussing what the parties to the dispute (European Union and few other countries on one side and India on the other) had to say, the article also analyses the WTO panel’s findings on questions as to whether Information Technology Agreement (‘ITA’) sets forth India’s legal obligation, whether ITA limits or modifies scope of tariff commitments under WTO Schedule, and whether there was an error of fact. According to the author, although India is making every effort to ensure a favourable ecosystem for electronics manufacturing in India, it is evident that its ITA commitments are going to create headwinds in the near future at least. The author however hopes that India is able to negotiate in its favour better terms with the complainants via bilateral agreements.

Trade News Remedy

  • Boltless Steel Shelving Units from India – USA issues finding of reasonable indication of threat of material injury, in anti-dumping investigation
  • Brass rod from India – USA issues finding of reasonable indication of material injury in anti-dumping investigation, while also initiates countervailing duty investigation
  • Cold-Drawn Mechanical Tubing of Carbon and Alloy Steel from India – USA issues affirmative finding of dumping
  • Cut-to-Length Carbon-Quality Steel Plate from India – USA issues affirmative finding of continuation of countervailable subsidies and affirmative findings of likely of continuation of dumping, after respective sunset reviews
  • Dispersion Unshifted Single-mode Optical Fiber (SMOF) from China PR, Indonesia, Korea RP – India’s DGTR recommends imposition of anti-dumping duty
  • Ferro Molybdenum from Korea RP – India’s DGTR recommends Bilateral Safeguard measures
  • Fine Denier Polyester Staple Fiber from India – USA issues affirmative finding of continuation of countervailable subsidies and affirmative findings of likely of continuation of dumping, after respective sunset reviews
  • Fishing net from China PR – India’s DGTR recommends continuation of anti-dumping duty after sunset review, and recommends extension of duty on imports from Malaysia after an anti-circumvention investigation
  • Flat Base Steel Wheels from China PR – India’s DGTR recommends continuation of anti-dumping duty after sunset review
  • Frozen Warmwater Shrimp from India – USA issues affirmative finding after anti-dumping sunset review
  • Graphite electrode systems from India – Definitive anti-dumping duty and countervailing duty imposed following an expiry review
  • Lined Paper Products from India – USA issues affirmative findings of continuation of countervailable subsidies after sunset review
  • Non-Refillable Steel Cylinders from India – USA issues finding of reasonable indication of material injury in anti-dumping investigation
  • Paper shopping bags from India – USA initiates anti-dumping duty and countervailing duty investigations
  • Silicomanganese from India – USA issues preliminary determination of sale at less than normal value
  • Stainless steel bars and rods from India – UK revokes countervailing duty
  • Sulfanilic Acid from India – USA rescinds countervailing duty Administrative Review 2022
  • Welded Stainless Pressure Pipe from India – USA issues affirmative finding of sale at less than normal value during 1 November 2020 till 31 October 2021

WTO NEWS

  • India and USA agree to terminate six WTO disputes
  • WTO dispute panel issues report regarding Chinese duties on Japanese steel products
  • Argentina initiates WTO dispute complaint regarding US measures on certain tubular goods

India Customs & Trade Policy Update

  • Pre-import condition under Advance Authorisation – Procedure notified for payment of IGST and Compensation Cess for the period 13 October 2017 till 9 January 2019
  • Import/export declarations – Additional qualifiers introduced with effect from 1 July 2023 for certain products
  • Soya-bean oil and Sunflower oil, both edible grade – Basic Customs Duty reduced
  • Chromium ores and concentrates export made ‘restricted’
  • Copra imports made ‘restricted’

Ratio decidendi

  • Valuation – Freight charge from third country which the vessel called en route to India, when not includible – CESTAT Mumbai
  • LED Socket Plug Assembly is classifiable under Customs Heading 8512 – Customs AAR

News Nuggets

  • United Kingdom notifies new Developing Countries Trading Scheme to replace Generalised Scheme of Preferences

June 2023/Issue-143 June 2023/Issue-143

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