PRESENTATION ON SUNSET REVIEW: INDIAN PRACTICES By A K Gautam, Director Directorate General of Antid

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PRESENTATION ON SUNSET REVIEW INDIAN
PRACTICESBy A K Gautam, DirectorDirectorate
General of Anti-dumping and Allied
DutiesDepartment of CommerceGovt. of India
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SUNSET REVIEW

• PRESENTATION ON INDIAN PRACTICES
• By A K Gautam, Director
• Directorate General of Anti-dumping and Allied
  Duties, Department Of Commerce, Govt. of India

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SUNSET OR EXPIRY REVIEW

• Article 11.3 - Definitive ADD shall lapse five
  years from the date of imposition.
• Such duty may be extended if the authorities
  initiates a review proceedings called
  sunset/expiry review before the expiry of 5 years
  of imposition of duty.
• The existing duty may remain in force pending the
  outcome of the review.
• The authority determines that the expiry of the
  duty would be likely to lead to continuation or
  recurrence of dumping and injury.
• The duty determined in such review remains valid
  for another 5 years.

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INITIATION OF REVIEW

• Upon a request of the domestic industry
• - the request must be duly substantiated
  and
• - filed within a reasonable time prior to
  expiry
• of the imposition of definitive duty.
• The Sunset Review shall normally conclude within
  12 months of initiation.
• The provisions of article 6 regarding evidence
  and procedure shall apply to sunset review also.
  
• On own initiative of investigating authorities.

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FOCUS ON SUNSET REVIEW

• The focus is on the likelihood of the
  continuation or recurrence of
• - dumping, and
• - injury.
• assessment of factors that may indicate that the
  domestic industry is likely to be materially
  injured again in the event of expiry of duty.

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LEGAL PROVISIONS UNDER INDIAN LAWS

• Section 9A(5) of the Customs Tariff Act,1975 -
• a) The anti-dumping duty imposed shall,
  unless revoked earlier cease to have effect on
  the expiry of five years from the date of such
  imposition.
• b) If the Central Govt., in a review, is of
  the opinion that the cessation of such duty is
  likely to lead to continuation or recurrence of
  dumping and injury, it may, from time to time
  extend the period of such imposition for a
  further period of five years.
• c) Such further period shall commence from
  the date of order of such extension.

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• If the review initiated prior to the expiry of 5
  years has not come to a conclusion before such
  expiry, the duty may remain in force pending the
  outcome of such review for a further period not
  exceeding one year.
• Rule 23 of Customs Tariff (Identification,
  Assessment and Collection of Anti-dumping Duty on
  Dumped Articles and for determination of Injury)
  Rules,1995 provides that the provisions of rules
  6,7,8,9/10,11,16, 17,18,19 and 20 shall be
  mutatis mutandis applicable in the case of review.

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PROCEDURE FOLLOWED IN SUNSET REVIEW IN INDIA

• A duly substantiated request by or on behalf of
  the domestic industry.
• that the expiry of duty would likely to lead to
  continuation or recurrence of dumping and injury.
• Request is received within reasonable time prior
  to expiry of 5 years of the definitive duty.

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EXAMINATION OF THE REQUEST

• Initiation of review after examination of the
  request with regard to
• a) Continued dumping and injury or
• b) Removal of injury is partly or solely due
  to the existence of measures, or
• c) The position/market conditions of the
  exporters indicate likelihood of further
  injurious dumping.
• Review is normally completed within 12 months.
• The Authority may also initiate a sunset review
  on its own where warranted.

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LIKELIHOOD TEST CONTINUATION OR RECURRENCE OF
DUMPING

• Examination of imports Period of Investigation
  3 preceding years.
• Evidence of dumping by the exporters to third
  countries is also looked in to assess likelihood
  of dumping.
• Freely disposable capacities available in subject
  countries.
• Evidence of duty absorption is also looked into
  to assess likelihood of dumping.
• Determining dumping margin for the POI.

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CONTINUATION OR RECURRENCE OF INJURY

• Assessment of the economic condition of the
  domestic industry during the POI and 3 preceding
  years .
• Assessment is made on the condition of the
  domestic industry during POI and effectiveness
  of the measures in force by analysing both
  dumping and injury.
• Assessment of the impact of the duty in force on
  their economic parameters viz. production, market
  share, profitability, capacity utilisation, sales
  etc. of the DI.
• If the Authority finds that dumped imports
  continue to injure the Domestic Industry, it may
  infer that the expiry of measures would only
  lead to a further deterioration of an already
  weakened DI.

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• While examining the volume of dumped imports, the
  authority also considers whether there has been a
  significant increase in the dumped imports either
  in absolute terms or relative to production or
  consumption in India.
• With regard to the effect of the dumped imports
  on prices, the authority considers whether there
  has been a significant price undercutting by the
  dumped imports and whether the effect of such
  import is otherwise to depress prices to prevent
  increase which otherwise would have occurred.
• The authority also looks into the evidence of
  production capacity of the exporters, export
  profile, likelihood of increased dumping to
  Indian market considering the availability of
  other export markets to absorb

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SOME PARAMETERS CONSIDERED IN SSR

• Significant Price undercutting by imports even
  with duty in force.
• Affirmative findings of continued dumping.
• Level of current dumping margin during Period of
  Investigation.
• Current injury during Period of Investigation or
  vulnerability of domestic industry.
• Surplus production capacity of exporters.
• Significant market share of dumped imports.

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Parameters considered (contd.)

• Increase in volume of dumped imports.
• Increase in market share of dumped imports.
• Evidence of duty absorption in case of fixed
  duty.
• Third country anti-dumping measures on the same
  merchandise from the same sources.

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SOME ISSUES FOR DELIBERATIONS

• Certain issues are raised in view of varying
  practices by different authorities
• What are the various methods available for
  establishing likelihood of dumping in SSR where
  there was no import from subject
  country/countries during POI. ?
• Where no dumping- margins are found during SSR.
  Whether likelihood of injury test will still
  apply or measure shall be terminated?
• Whether the assessment of dumping and injury
  shall always be done for the POI and likelihood
  test applied on such assessment or current
  (post-POI) volume of imports and its effects on
  prices and other economic parameters be evaluated
  and likelihood test applied thereafter?
• Whether there is a need for an indicative list of
  factors that authorities should consider while
  considering SSR?

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THANK YOU