Article
Is export restraint a countervailable subsidy? – Strict to liberal approach
By Baratwaj Viswanathan
The article in this issue of International Trade Amicus discusses as to whether a government action in the form of an export restraint on the export of a product results in a subsidy to the domestic producers of downstream products. It elaborately analysis WTO Panel report in United States - Measures treating export restraints as subsidies and the Appellate Body report in the dispute United States- Countervailing duty investigation on dynamic random-access memory semiconductors (‘DRAMS’) from Korea, and discuss how the trade authorities in various jurisdictions like USA, European Union and India have dealt with this issue. According to the author, the answer to this question is not a simple yes or no, and a demonstrable link has to be established for determination of subsidy. The article concludes by stating that it will be interesting to see how the future WTO jurisprudence develops on the legal standard of ‘responsibility’ or ‘authority’ laid down in the appellate body report.
Trade News Remedy
- Barium Chloride from India – USA issues countervailing duty order
- Ceramic Tiles from India – European Union imposes definitive anti-dumping duty
- Cold-Drawn Mechanical Tubing of Carbon and Alloy Steel from India – USA issues preliminary finding that countervailable subsidies were provided during 1 January 2021 till 31 December 2021
- Cold-Drawn Mechanical Tubing of Carbon and Alloy Steel from India – USA issues affirmative finding in anti-dumping sunset review
- Finished Carbon Steel Flanges from India – USA determines sales at less than normal value during 1 August 2020 till 31 July 2021
- Flat Base Steel Wheels from China PR – India initiates sunset review of anti-dumping duty
- Flexible Slabstock Polyol from China PR and Thailand – India initiates anti-dumping investigation
- Frozen Warmwater Shrimp from India – USA issues preliminary determination that goods are being or are likely to be sold in the USA at less than normal value during the period of review 1 February 2021 till 31 January 2022
- Paper File Folders from India – USA issues preliminary determination that countervailable subsidies were being provided during 1 January 2021 till 31 December 2021
- Plates and tiles of fine stoneware porcelain stoneware for paving or cladding, from India – Argentina initiates expiry review of anti-dumping duty
- Stainless Steel Bar from India – USA determines no sale at less than normal value during 1 February 2021 till 31 January 2022
- Stainless Steel Flanges from India – USA determines sales at prices below normal value during the period of review – 1 October 2020 till 30 September 2021, absence of reviewable shipments by M/s. Emerson Process Management and M/s. Echjay Forgings Private Limited
WTO NEWS
- Safeguard measures under India and Mauritius Comprehensive Economic Cooperation and Partnership Agreement – India and Mauritius clarify
- Seychelles formally accepts Fishing Subsidies Agreement – First WTO member from Africa to do so
India Customs & Trade Policy Update
- Foreign Trade Policy 2023 announced – Highlights
- India-Australia FTA – Origin procedures clarified
- RoDTEP – 18 new entries in Heading 5208 made eligible for RoDTEP from 28 March 2023
- Milk, fish and pork, and their products – Requirement of health certificate for import deferred
- Crude soya-bean oil and crude sunflower seed oil – Tariff Rate Quota exemption now limited only till 31 March 2023
- Tur whole exempted from BCD
- Cashew kernel – EOUs/SEZs allowed to import without Minimum Import Price condition
- Marble imports from Bhutan – Specified quantity allowed without MIP condition
- Biofuel exports for fuel purpose allowed from EOUs and SEZs
Ratio decidendi
- Aluminium alloy coil when eligible for exclusion from anti-dumping duty under Notification No. 23/2017-Cus. (ADD) – CESTAT New Delhi
- Anti-dumping Rules are not inconsistent with RTI Act – Disclosure of ‘confidential information’ is not possible – Delhi High Court
- GoPro digital camera for use while surfing, skydiving, etc. is classifiable under TI 8525 80 20 – CESTAT Mumbai
- Stepper motor classifiable under Tariff Item 8501 10 12 – Customs AAR
