Page 106 - DHC Budget Book 2021-22 Final
P. 106
INDIA BUDGET 2021-22
9.4
Amendments in Rules framed under the Customs Tariff Act, 1975
9.4.1 Changes in Anti-Dumping Duty & Countervailing Duty Rules [Notification No. 10/2021-Customs (N.T.) & 11/2021-Customs (N.T.)] [Effective from 02-02-2021]
Procedural changes has been introduced regarding investigation periods under Anti- Dumping.
New requirement introduced to complete review investigations at least 3 months prior to the expiry of ADDs and CVDs.
The CG has been empowered to resort to Provisional assessment of imports of an article alleged to be circumventing the ADDs and CVDs in force. A guarantee may be sought from the importer till the time a decision is reached regarding imposition of any additional duty.
Comment:
A stricter deadline has been provided for the timely completion of sunset clause review of various duties, mitigating against any potential lapses of duty.
The guarantee sought from importer provides protection to the domestic industry in those cases where the duration of the investigation is extended due to various uncontrollable factors.
9.4.2 Changes in Customs Tariff (Identification and Assessment of Safeguard Duty) Rules, 1997 [Notification No. 12/2021-Customs (N.T.)] [Effective from 02-02-2021]
The term “measures” has been substituted in place of “duty” throughout the rules, expanding the overall scope of the Rules.
The term “Safeguard measure” has been defined as “safeguard duty, or a tariff rate quota or such other measures imposed under Sec. 8B(1) of the Customs Tariff Act, 1975.
The Director General (Safe Guard) has also been empowered to review the usage and implementation of TRQ for any modification.
The level of TRQ to be determined considering the following:
1) maintaining traditional trade flow of the article over the representative period;
2) the existing and likely demand supply scenario in the country; and
3) any other condition that may be considered relevant.
The level of TRQ applied shall not reduce the quantity of imports below the level of average of imports in the last 3 years.
TRQ may be global or country specific. Option provided to countries having exhausted their specific TRQ to use the residual TRQ provided to other countries.
Any unused TRQ may also be carried forward for subsequent periods.
Condition inserted that Safeguard Measures may not be imposed on articles originating from one or more developing countries provided that the share of imports from the countries is within specified limits.
The CG to notify to the WTO all actions required under the WTO Agreement on Safeguards and
to provide an opportunity to hold consultations with the members of the WTO having substantial interest as exporters of the product concerned before imposition of a safeguard measure.
Comment:
Vide Finance Act 2020, Sec. 8B was amended to empower the CG to also apply tariff quantity restrictions and other measures in case any article is imported into India in such increased quantities which may cause or threat to cause clear and imminent significant overall impairment to the domestic industry. The amendment in Rules aligns the existing Safeguard Duty Rules with the amendments introduced in the Finance Act 2020.
The country-specific TRQs would give the CG more flexibility in terms of targeting specific, injurious imports.
To avoid any conflicts, consequential amendments are expected in the existing Safeguard Measures (Quantitative Restrictions) Rules, 2012 which presently govern the application of safeguard measures imposed in the form of quantitative restrictions.
104 Building a Resilient and Confident India
