Page 395 - MANUAL OF SOP
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Manual of OP for Trade Remedy Investigations
16.46. This form of duty acts as a disincentive for the exporters to decrease their
prices as the decrease in the landed value would correspondingly increase the
applicable anti-dumping duty.
16.47. It suffers from the possibility of abuse where the unscrupulous exporters/
importers may artificially increase their prices to avoid the anti-dumping duties but
resell in the Indian market at lower prices, thus creating false import data base.
16.48. It is not desirable where major raw materials are liable to significant price
fluctuations. For instance, it is possible that the import prices rise mainly on account
of the fact that the price of the principal raw material has gone up. In such a
case, the Domestic Industry may not be effectively protected as the rise in the
raw material prices will also increase their costs. Conversely, if the price of the
principal raw material have declined, then domestic industry gets extra protection
and exporters/importers get unnecessarily penalized even though they may not be
indulging in dumping or causing injury.
16.49. This form of duty suffers from the vice of being inflexible inasmuch as this
duty becomes ineffective in a rising market and overly protective perhaps punitive
in a falling market.
16.50. This form of duty may not suit the situation where there are many grades or
types of the subject goods with significantly different prices.
Period of Duty Recommended
16.51. The provision indicates that maximum validity of the duty at one instance in
an original investigation could be 5 years, however, minimum time period of validity
is not mentioned.
16.52. It is the practice of the Directorate to normally recommend duty for 5 years,
however, there have been few cases where duty was recommended for less than 5
years .
7
16.53. In case of Sunset Review Investigation, the provision clearly provides
imposition of duty for further period of 5 years, therefore extension should be done
for 5 years only.
7 Final Finding in Anti-dumping investigation on imports of Resorcinol originating in and exported from China PR
and Japan, F. No. 15/20/2014-DGAD dated January 4, 2018; Final Finding in Anti-dumping investigation on imports
of Ofloxacin and O-Acid originating in and exported from China PR, F. No. 14/6/2016-DGAD dated December 22,
2017, Final Finding in Anti-dumping investigation on imports of O-Acid originating in and exported from China PR,
F. No 14/31/2016 dated December19, 2017
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