Govt extends quality rules on all imported goods

Govt extends quality rules on all imported goods

NEW DELHI, JAN 4: The government has extended the provisions of the Standard Weights and Measures (Packaged Commodities) Rules, 1997 to all imported goods, thus going beyond the list of 131 such products already notified. In this regard, the Director-General of Foreign Trade (DGFT) has issued a clarification.

The clarification follows doubts whether the above rules will apply to all pre-packaged imported goods or be confined to those goods notified by DGFT on November 23 last.

In a circular, DGFT explains that the compliance with the Indian quality standards is an independent provision and it will apply to all imports of pre-packaged products as applicable to similar domesic manufactured products.The move is aimed at giving the domestic industry a level-playing field vis-a-vis foreign companies in the wake of removal of quantitative restrictions on the remaining 715 tariff lines by March 31, 2001. It is also the intention to prevent under-invoicing and other such malpractices.

DGFT has also stated that the provisions of Packaged Commodities Rules will not apply to those imports for which an irrevocable letter of credit (LC) had been established prior to November 23 and imports had been made within the original validity of such LC. Further, these rules will not apply where shipments had been made prior to this date,the circular said.

The twin measure to protrect the domestic industry follows decisions taken by the Strategic Management Group (SMG) functioning in the Prime Minister's office. The Group headed by Brijesh Mishra, PM's Principal Secretrary, includes the Cabinet Secretary, and secretaries in the finance ministry, revenue department, commere department and industry ministry.

The SMG has been set up to take concrete measures on economic and inter-ministerial issues, including power and irrigation projects. The government, it is stated, has other weapons in its armoury to prevent abnormal situations like a surge in imports after the removal of QRs. It will raise tariffs even beyond the bound rates of customs duties, a safeguard measure ordained by the WTO.

The bound rates are fixed at a certain level beyond which the customs duties cannot be raised under WTO rules. Thus, there are ceilings on tariff rates.

As regards protection to the agricultural sector, the basic customs duty or import tariff has already been raised from April 5, 2000. The products include rice in husk (paddy or rough) from zero to 80 per cent, husked (brown rice) rice from zero to 80 per cent, semi-milled or wholly milled rice, whether or not polished or glazed, from zero to 70 per cent, broken rice from zero to 80 per cent and maize (corn) seed from zero to 50 per cent.

Dumping duty on Chinese item

New Delhi: The designated authority set up in the commerce ministry to probe dumping cases has recommended imposition of a provisional anti-dumping duty at $ 271.67 a tonne on sodium hydrosulphite imported from China.

The move comes a day after the initiation of anti-dumping investigations by the authority in respect of imports of isobutyl benzene (IBB) also originating in China.

The authority has also suggested levy of provisional anti-dumping duty of $ $ 1535 a tonne on sodium ferrocyanide originating in the European Union on grounds of material injury to the domestic industry. In recommending the provisional anti-dumping duty on sodium hydrosulphite pending the determination of the final duty on the product by the finance ministry, the authority concludes that the material has been exported by China below its normal value, resulting in material injury to the domestic industry.

The move follows a petition filed by Transpek Industry Ltd, Gujarat, and Demosha Chemicals, Mumbai, representing the domestic industry, alleging dumping of sodium hydrosulphite.

According to the petitioners, there had been a significant increase in the quatum of imports of sodium hydrosulphuite from China, leading to underutting of the price in the domestic marjket and eroding its profitablity.