DGFT notifies Final Findings of Investigation on Circumvention via Malaysia of Anti-Dumping Duty on Imports of ‘Fishing Net’ from China PR [Read Notification]

The Directorate General of Foreign Trade (DGFT) notified the final findings of the anti-circumventing investigation on alleged circumvention via Malaysia of anti-dumping duty imposed on the import of the Fishing Net originating or exported from China PR. 

With regards to the Customs Tariff Act, 1975 and the Customs Tariff (Identification, Assessment and Collection of Anti-Dumping Duty on Dumped Articles and for Determination of Injury) Rules 1995, the officials conducted the investigation.

The applicant  Indian Fishnet Manufacturers Association (IFMA) filed an application  before the Designated Authority on behalf of the domestic industry, alleged that these anti dumping duties imposed on imports of “fishing net” (Product under Consideration-PUC) originating in or exported from China PR are being circumvented by way of imports of “fishing net” (Product Under Investigation- PUI) exported from Malaysia.

The applicant contended that there is a circumvention of existing duties wherein the product under consideration produced in China PR is exported to Malaysia. These goods are thereafter declared as originating in Malaysia and exported to India to circumvent the measures imposed on China.

Therefore, it has been claimed that this constitutes circumvention of anti-dumping duty, the effect of which is evident from the change in the pattern of trade, and it has undermined the remedial effects of the anti-dumping duties being felt by the domestic industry.

The authorities concluded that there has been a change in the pattern of trade post imposition of anti-dumping duties in the case of the PUI for which there is no due cause or economic justification other than the existing anti-dumping duties. The imports from Malaysia which were in negligible quantities during the POI of the original investigation increased significantly over the injury period while imports from China PR declined after imposition of anti-dumping duties and is negligible in the POI.

It was also observed that the imports of PUI from Malaysia are entering the Indian market at significantly dumped prices and are undercutting the prices of the domestic industry. It has undermined the remedial effect of the existing anti-dumping measure on the PUC imposed vide Customs Notification No. 20/2018-Customs (ADD) dated 10th April 2018.

The Authority keeping in view the aforesaid, recommends an extension of existing anti-dumping duty on subject goods originating in or exported from China PR, imposed vide Customs Notification No. 20/2018- Customs (ADD), dated 10th April 2018, on PUI tabulated as below, subject to the following:

***Note – Customs classification is only indicative, and the determination of anti-dumping duty shall be made as per the description of the PUC.

An appeal against the order of the Central Government arising out of this final finding shall lie before the Customs, Excise, and Service Tax Appellate Tribunal in accordance with the Customs Tariff Act, 1975.

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