Govt to probe Chinese dumping; Import duty on palmoil hiked

Govt to probe Chinese dumping; Import duty on palmoil hiked
ENS ECONOMIC BUREAU

NEW DELHI, NOV 21: The Union government has suo moto initiated anti-dumping investigations against import of consumer goods like dry batteries, toys and sports shoes from China. This is the for the first time that the government has initiated anti-dumping investigations against consumer goods.

L V Saptharishi, designated authority in the Directorate General of Anti-Dumping and Allied Duties (DGAD), said that "we have received reports from revenue authorities and representations from the industry associations" about dumping of consumer goods from China.

In view of specific information, he added, the DGAD decided to initiate suo moto anti-dumping investigations under Rule 5(4) of the Anti-Dumping Rules on imports of consumer items from China. The government, it may be mentioned, had earlier initiated anti-dumping proceedings against imports from China in case of chemicals and intermediates goods.

Saptarishi said that initiation of anti-dumping proceedings against import of dry batteries, toys and sports shoes was significant as "it marks the beginning of investigations into dumping of consumer goods into India."

The earlier cases of anti-dumping investigated by the DGAD involved raw materials and intermediates, belonging to chemicals, petrochemicals, pharmaceuticals and metals sectors.

According to an official press release, the anti-dumping proceedings initiated by the DGAD will send right signals to the domestic industry which has to face competition from imported goods after lifting of QRs.

It was further stated that the decision manifests the stand of the government regarding ensuring a fair and competitive level playing field for domestic industry as India gets ready to face the emerging liberlaised international trade regime.

As far as Chinese goods are concerned, it may be mentioned, the whole market place is being flooded with cheap goods. Initially the country witnessed a flood of electronic toys from China. Cheap toys gave a tough time to the domestic manufacturers with many going into the red. Later the basket of imported consumer goods from China expanded to include light accessories, dry batteries and sports shoes.

The decision of the government to initiate investigations against import of cheap Chinese goods will provide the much needed succor to the domestic industry which is in the grip of industrial slowdown. The industry sources, when contacted, suggested that the government should expedite the investigations and impose anti-dumping duties as fast as possible.

IMPORT DUTY ON PALMOIL GOES UP: The Union Commerce Ministry has decided to hike the basic import duty on refined palmoil and RBD palmolien to 65 per cent from the existing 35 per cent. Other refined edible oils in loose or in bulk form will carry a basic duty of 45 per cent as against 35 per cent basic duty imposed earlier. The refined edible oils would also carry a special additional duty (SAD) of 4 per cent, but there will not be any surcharge on any of the oils, whether crude or refined.

Crude palm oil (CPO) of edible grade when imported for manufacture of vanaspati will now attract a basic import duty of 25 per cent as against 15 per cent earlier. CPO of edible grade if imported for a purpose other than for the vanaspati industry, will attract a duty of 55 per cent as against 45 per cent imposed earlier.

Crude vegetable oils (other than coconut oil and palmoil and its fractions) of edible grade which earlier carried a basic duty of 25 per cent, would now be chargeable to a basic duty of 35 per cent.

The government has effected the current revision in duty structure on edible oils with a view to harmonise the interests of the consumers, farmers and processors, besides regulating large imports of edible oils.

In a span of six months, the duty structure of edible oils wa revised twice.

The first revision was effected on December 30, 1999 when the basic duty on refined edible oils was raised to 25 per cent, while that on crude oil was maintained at 15 per cent, for vanaspati manufacturers and refiners.

The second revision was effected on June 12, 2000 when the basic duty on crude edible oil was raised from 15 per cent to 25 per cent.

However, in case of crude palmoil for manufacture of vanaspati, the basic duty was retained at 15 per cent. Basic duty on refined oils (other than coconut oil, RBD palm kernel oil and RBD palm stearin) was raised to 35 per cent. For all other edible oils, the basic duty was 45 per cent except in case of olive oil, where the duty was 40 per cent because of the WTO bound rate.

One of the major reason for hikes in duty has been the need to regulate the import of edible oils to a reasonable level. However, except for a very brief period, the hike in duty did not seem to be having much impact in regulating the import of edible oils. Because of the continuing trend of depressed prices of edible oils in the global market, large imports of edible oils continued.

In fact, in the oil year 1999-2000 (Nov-Oct), the import of edible oils is estimated to be around 43 lakh tonne. Large imports of oils and the depressed prices of oils have had a dampening effect, particularly on the oilseed growers, who had been demanding further hikes in import duty on edible oils.