CBIC notifies Customs Tariff (Identification and Assessment of Safeguard Duty) Amendment Rules, 2021 [Read Notification]

CBIC - Customs Tariff - Safeguard Duty - Amendment Rules - Taxscan

The Central Board of Indirect Taxes and Customs (CBIC) notified the Customs Tariff (Identification and Assessment of Safeguard Duty) Amendment Rules, 2021.

The notification will come into force from 2nd February, 2021.

The notification seeks to amend the Customs Tariff (Identification and Assessment of Safeguard Duty) Rules, 1997

As per the amendment the Director General shall determine serious injury or threat of serious injury to the domestic industry taking into account the two principles.

Firstly, in the investigation to determine whether increased imports have caused or threatening to cause serious injury to the domestic industry, the Director General shall evaluate all relevant factors of an objective and quantifiable nature having a bearing on the situation of that industry, in particular, the rate and amount of the increase in imports of the article concerned in absolute and relative terms, the share of the domestic market taken by increased imports, changes in the level of sales, production, productivity, capacity utilisation, profits and losses, and employment

Secondly, the determination shall not be made unless the investigation demonstrates, on the basis of objective evidence, the existence of the causal link between increased imports of the article concerned and serious injury or threat thereof and when factors other than increased imports are causing injury to the domestic industry at the same time, such injury shall not be attributed to increased imports and in such cases, the Director General may refer the complaint to the authority for anti-dumping or countervailing duty investigations, as appropriate.

The Director General shall also give recommendations regarding the extent of measure which, if levied, would be adequate to prevent or remedy serious injury and to facilitate adjustment.

The level of tariff rate quota, if imposed as a measure, may be determined having regard to the conditions, namely maintaining traditional trade flow of the article over the representative period; the existing and likely demand supply scenario in the country; and any other condition that may be considered relevant.

However, the tariff rate quota applied shall not reduce the quantity of imports below the level of the recent period, which shall be the average of imports in the last three years for which statistics are available, unless a different level is deemed necessary to prevent or remedy serious injury.

“If the safeguard measure imposed as a duty after the conclusion of the investigation is lower than the provisional measure in the form of a duty already imposed and collected, the differential shall be refunded to the importer,” the notification while inserting the provisions related to Refund of duty, said.

The Central Government shall notify the WTO of all actions required under the WTO Agreement on Safeguards.

Before the imposition of a safeguard measure, an opportunity to hold consultations with the members of the WTO having a substantial interest as exporters of the product concerned shall be provided.

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