{"id":34720,"date":"2022-11-21T12:29:55","date_gmt":"2022-11-21T06:59:55","guid":{"rendered":"https:\/\/vajiramandravi.com\/current-affairs\/?p=34720"},"modified":"2025-04-20T16:36:44","modified_gmt":"2025-04-20T11:06:44","slug":"govt-moves-on-anti-subsidy-dumping-levies-under-lens","status":"publish","type":"post","link":"https:\/\/vajiramandravi.com\/current-affairs\/govt-moves-on-anti-subsidy-dumping-levies-under-lens\/","title":{"rendered":"Govt Moves on Anti-subsidy; Dumping Levies Under Lens"},"content":{"rendered":"<h3><strong>What\u2019s in today\u2019s article:<\/strong><\/h3>\n<ul>\n<li><strong>Different types of trade remedies: Anti-dumping, subsidies, safeguards<\/strong><\/li>\n<li><strong>Directorate General of Trade Remedies (DGTR)<\/strong><\/li>\n<li><strong>News Summary<\/strong><\/li>\n<\/ul>\n<p>&nbsp;<\/p>\n<h2><strong>Why In News?<\/strong><\/h2>\n<ul>\n<li>At least two judicial pronouncements have taken a dim view of the finance ministry\u2019s decisions against imposing anti-dumping and safeguard duties.<\/li>\n<li>Recently, in many cases, the Centre chose not to impose anti-dumping duty.<\/li>\n<li>This was despite the findings and recommendations of the Directorate General of Trade Remedies (DGTR) establishing adverse impact of cheap or subsidised imports on domestic industry.<\/li>\n<\/ul>\n<p>&nbsp;<\/p>\n<h2><strong>Different types of trade remedies: Anti-dumping, subsidies, safeguards<\/strong><\/h2>\n<p><img decoding=\"async\" src=\"https:\/\/vajiramandravi.s3.us-east-1.amazonaws.com\/media\/editor_images\/2022\/11\/21\/12\/35\/1\/637b231df5602905a2098cb0_OI.PNG\" alt=\"\" \/><\/p>\n<ul>\n<li>Binding tariffs, and applying them equally to all trading partners (most-favoured-nation treatment, or MFN) are key to the smooth flow of trade in goods.<\/li>\n<li>The WTO agreements uphold the principles, but they also allow exceptions \u2014 in some circumstances. Three of these issues are:\n<ul>\n<li><strong>Actions taken against dumping<\/strong>\u00a0(selling at an unfairly low price) \u2013 by imposing anti-dumping duties.<\/li>\n<li><strong>Special \u201ccountervailing\u201d duties<\/strong>\u00a0to offset the subsidies made to producers of these goods in the exporting country.<\/li>\n<li><strong>Emergency measures to limit imports temporarily<\/strong>, designed to \u201csafeguard\u201d domestic industries.\n<ul>\n<li>A WTO member may restrict imports of a product temporarily (take safeguard actions) if its domestic industry is injured or threatened with injury caused by a surge in imports.<\/li>\n<\/ul>\n<\/li>\n<\/ul>\n<\/li>\n<li>These duties are extra import duties imposed on goods in addition to the normal duties that apply in the country.<\/li>\n<\/ul>\n<p>&nbsp;<\/p>\n<h2><strong>Directorate General of Trade Remedies (DGTR)<\/strong><\/h2>\n<ul>\n<li>Earlier known as DGAD (Directorate General of Anti-Dumping &amp; Allied Duties), it was renamed in May 2018.<\/li>\n<li>It works under the\u00a0<u>Ministry of Commerce and Industry<\/u>.<\/li>\n<li>It was formed as a single national entity dealing with all kinds of Trade Remedial measures (anti-dumping, countervailing, safeguard).<\/li>\n<li>The DGTR provides a level playing field to the domestic industry against the unfair trade practices like dumping, subsidization and surge in imports.<\/li>\n<\/ul>\n<p>&nbsp;<\/p>\n<h2><strong>News Summary<\/strong><\/h2>\n<h3><strong>Background:<\/strong><\/h3>\n<ul>\n<li>Recently, the revenue department opted to be\u00a0<strong>selective<\/strong>\u00a0in imposing anti-dumping or safeguard duties to protect domestic industry.\n<ul>\n<li>E.g., the revenue department decided to unilaterally suspend countervailing duty on certain varieties of stainless steel from China, which was quashed and set aside by the Gujarat high court.<\/li>\n<\/ul>\n<\/li>\n<li>Many a times, it chose to do so against the recommendations of the designated authority such as DGTR.<\/li>\n<li>Several Indian companies and industry bodies have gone to court against the revenue department\u2019s these decisions.<\/li>\n<li>Hearing a set of cases, the Customs, Excise &amp; Service Tax Appellate Tribunal asked the Centre to reconsider its decisions in a bunch of cases\u00a0<u>where it decided against accepting the designated authority\u2019s recommendations<\/u>.\n<ul>\n<li>It asked the Centre to give tentative reasons for not accepting the recommendations so as to give the domestic industry an opportunity to submit a representation.<\/li>\n<\/ul>\n<\/li>\n<li>In several cases, where the revenue department in the finance ministry did not bother to communicate its final decision, the tribunal has taken the same view.\n<ul>\n<li>The\u00a0<u>law governing anti-dumping cases requires the revenue department to decide on a matter within three months of the DGTR\u2019s recommendations<\/u>.<\/li>\n<\/ul>\n<\/li>\n<\/ul>\n<h3><strong>Imposition of anti-dumping duty: difference in opinion<\/strong><\/h3>\n<ul>\n<li>The finance ministry and NITI Aayog are of the view that imposing anti-dumping duty impact other producers in the chain adversely.<\/li>\n<li>On the other hand, the commerce ministry believes the DGTR recommendations come after establishing adverse impact on domestic producers and are in line with World Trade Organization rules.\n<ul>\n<li>The commerce department is of the opinion that\u00a0<u>unless such an action is taken, domestic industry will be wiped out<\/u>.<\/li>\n<\/ul>\n<\/li>\n<\/ul>\n","protected":false},"excerpt":{"rendered":"<p>DGTR is the single national authority for administering all trade remedial measures.<\/p>\n","protected":false},"author":5,"featured_media":34721,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"footnotes":""},"categories":[18],"tags":[],"class_list":{"0":"post-34720","1":"post","2":"type-post","3":"status-publish","4":"format-standard","5":"has-post-thumbnail","7":"category-upsc-mains-current-affairs","8":"no-featured-image-padding"},"acf":[],"_links":{"self":[{"href":"https:\/\/vajiramandravi.com\/current-affairs\/wp-json\/wp\/v2\/posts\/34720","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/vajiramandravi.com\/current-affairs\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/vajiramandravi.com\/current-affairs\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/vajiramandravi.com\/current-affairs\/wp-json\/wp\/v2\/users\/5"}],"replies":[{"embeddable":true,"href":"https:\/\/vajiramandravi.com\/current-affairs\/wp-json\/wp\/v2\/comments?post=34720"}],"version-history":[{"count":0,"href":"https:\/\/vajiramandravi.com\/current-affairs\/wp-json\/wp\/v2\/posts\/34720\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/vajiramandravi.com\/current-affairs\/wp-json\/wp\/v2\/media\/34721"}],"wp:attachment":[{"href":"https:\/\/vajiramandravi.com\/current-affairs\/wp-json\/wp\/v2\/media?parent=34720"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/vajiramandravi.com\/current-affairs\/wp-json\/wp\/v2\/categories?post=34720"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/vajiramandravi.com\/current-affairs\/wp-json\/wp\/v2\/tags?post=34720"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}