India plans to slap countervailing duty on Bangladesh jute goods

[Black_cats]

India plans to slap countervailing duty on Bangladesh jute goods
Jasim Uddin | Published: 21:19, May 14,2020 | Updated: 23:56, May 14,2020

https://www.newagebd.net/article/10...-countervailing-duty-on-bangladesh-jute-goods

India has initiated an anti-subsidy investigation for imposition of countervailing duty (CVD) on imports of jute products, including jute sacking bags, jute sacking cloth and jute yarn, from Bangladesh.

Director General of Trade Remedies (DGTR) of India has already invited Bangladesh for consultation, a condition prior to starting such an investigation.

A country can impose countervailing duty on import of subsidised products from any other country to offset injury caused to local products due to the import of subsidised imports.

The consultation is supposed to be held through video conferencing by May 15.

Bangladesh commerce ministry has already requested India to defer the consultation until June 15 considering the prevailing situation of COVID-19 pandemic.

Trade officials and industry insiders said that the move would come as a huge threat to export of jute products to India, which is a large market for jute products, where Bangladesh’s export of the products has been dwindling since 2017 following imposition of anti-dumping duty by the country.

India in April, 2017 imposed anti-dumping duty ranging from $19 to $351.72 a tonne on import of jute products including jute yarn, twine, hessian fabric and jute sacking bags from Bangladesh for five years.

Bangladesh annually exports jute and jute products worth around $200 million to India.

Trade officials and industry insiders said that India had been creating barriers one after another to import of the products to hamper Bangladesh’s export.

Export of the products will be severely impacted if, in addition to the ADD, a CVD is imposed, they said.

Commerce ministry’s World Trade Organisation cell director general Sharifa Khan on Thursday told New Age that they had already sought time extension for consultation on the ground of coronavirus pandemic.

Holding consultation is a primary stage and a WTO-set condition of initiating any countervailing investigation, she said.

At the consultation, India may raise the issue while Bangladesh will provide its arguments, she added.

The Bangladesh Trade and Tariff Commission will carry out research activities and provide necessary supports to the commerce ministry in handling the issues.

Bangladesh Jute Mills Association secretary general Abdul Barik Khan told New Age that India had been taking various measures to hamper Bangladesh’s export of jute products to the country.

‘Bangladesh should impose duty on export of raw jute and make containerised export of the item through sea route mandatory to make India’s export of raw jute costlier as part of tackling the measures,’ he said.

 

[Bilal9]

India plans to slap countervailing duty on Bangladesh jute goods
Jasim Uddin | Published: 21:19, May 14,2020 | Updated: 23:56, May 14,2020

https://www.newagebd.net/article/10...-countervailing-duty-on-bangladesh-jute-goods

India has initiated an anti-subsidy investigation for imposition of countervailing duty (CVD) on imports of jute products, including jute sacking bags, jute sacking cloth and jute yarn, from Bangladesh.

Director General of Trade Remedies (DGTR) of India has already invited Bangladesh for consultation, a condition prior to starting such an investigation.

A country can impose countervailing duty on import of subsidised products from any other country to offset injury caused to local products due to the import of subsidised imports.

The consultation is supposed to be held through video conferencing by May 15.

Bangladesh commerce ministry has already requested India to defer the consultation until June 15 considering the prevailing situation of COVID-19 pandemic.

Trade officials and industry insiders said that the move would come as a huge threat to export of jute products to India, which is a large market for jute products, where Bangladesh’s export of the products has been dwindling since 2017 following imposition of anti-dumping duty by the country.

India in April, 2017 imposed anti-dumping duty ranging from $19 to $351.72 a tonne on import of jute products including jute yarn, twine, hessian fabric and jute sacking bags from Bangladesh for five years.

Bangladesh annually exports jute and jute products worth around $200 million to India.

Trade officials and industry insiders said that India had been creating barriers one after another to import of the products to hamper Bangladesh’s export.

Export of the products will be severely impacted if, in addition to the ADD, a CVD is imposed, they said.

Commerce ministry’s World Trade Organisation cell director general Sharifa Khan on Thursday told New Age that they had already sought time extension for consultation on the ground of coronavirus pandemic.

Holding consultation is a primary stage and a WTO-set condition of initiating any countervailing investigation, she said.

At the consultation, India may raise the issue while Bangladesh will provide its arguments, she added.

The Bangladesh Trade and Tariff Commission will carry out research activities and provide necessary supports to the commerce ministry in handling the issues.

Bangladesh Jute Mills Association secretary general Abdul Barik Khan told New Age that India had been taking various measures to hamper Bangladesh’s export of jute products to the country.

‘Bangladesh should impose duty on export of raw jute and make containerised export of the item through sea route mandatory to make India’s export of raw jute costlier as part of tackling the measures,’ he said.

Bangladesh Jute Mills Association secretary general Abdul Barik Khan told New Age that India had been taking various measures to hamper Bangladesh’s export of jute products to the country.

‘Bangladesh should impose duty on export of raw jute and make containerised export of the item through sea route mandatory to make India’s export of raw jute costlier as part of tackling the measures,’ he said.

This man has some balls standing up to Indian Ram-bhakt strong-arming tactics. Bravo!

And some friendlies we have in their govt.

Once we start imposing duty on export of raw jute, then they will start falling in line...they've been profiting off our raw jute for too long.

 

[DalalErMaNodi]

This man has some balls standing up to Indian Ram-bhakt strong-arming tactics. Bravo!

And some friendlies we have in their govt.

Once we start imposing duty on export of raw jute, then they will start falling in line...they've been profiting off our raw jute for too long.

Do you think BAL government will impose the necessary tariffs forcing India to back off ?

 

[Nilgiri]

A) Simply look 4 years back:

https://defence.pk/pdf/threads/open-intervention-in-bangladesh.435613/page-2#post-8397759

Call for "boycott" and "standing up" and whatever catchphrase lends itself to intrinsic low intelligence...and basis for multiple threads of "stronk growth pharma!"

B) Look at reality unfolding as karma right now in the same big plan "we should boycott stronk!" sector:

https://defence.pk/pdf/threads/drug...ion-rupee-scandal.665509/page-2#post-12319765

i.e 42% shrinking at pathetic low base (pre-covid too), all because level playing field exists unlike RMG-LDC feelz.

C) Check 4 years later for more brutal reality check karma...and if BD BAL-sters have imposed any iota of "duty" on dada....and if dada is "falling in line" ....The trend sure is looking super promising after all...should extend to jute-feelz too.

 

[fallstuff]

Not surprised here, just wondering what took so long to lay that egg of an idea !

 

[Bilal9]

Do you think BAL government will impose the necessary tariffs forcing India to back off ?

Well I have seen Hasina actually not back off on trade matters. Ignore the trolls. @WebMaster bhai and @LeGenD bhai please note continual attempts to derail and hijack threads, any thread!

Sigh....

 

[bluesky]

India in April, 2017 imposed anti-dumping duty ranging from $19 to $351.72 a tonne on import of jute products including jute yarn, twine, hessian fabric and jute sacking bags from Bangladesh for five years.

BAL should re-think about India. If India is a friend, BD needs no enemy in the international arena. India seeks the destruction of BD economy by imposing unfair duties on its imports from BD.

BD should ask for WTO intervention on the matter.

 

[Nilgiri]

BD should ask for WTO intervention on the matter.

It needs actual fair election in BD and internal political pressure and such opinion to be aired/sustained in halls of power in first place.

Instead you get 95%...and your people seem fine with this status quo...or simply have little to no means to direct any effort there to challenge in other ways.

What do?

 

[Homo Sapiens]

BD should ask for WTO intervention on the matter.

Already sought for Anti-dumping duty back in late February in this year. But it seems unclear whether it was actually done as per the plan or yet not done.

Bangladesh seeks WTO action against India next week
India imposed anti-dumping duties on Bangladeshi jute products for five years from January 2017
Jasim Uddin
25 February, 2020, 01:25 pm
Last modified: 25 February, 2020, 03:22 pm


The government will appeal to the World Trade Organization (WTO) next week to get redress against Indian anti-dumping duties on imports of Bangladeshi jute products.

The Indian government imposed the anti-dumping duties, ranging from $97.19 to $351.71 per tonne, on all jute companies in Bangladesh for five years from January 2017.

Officials of the Ministry of Commerce and the Bangladesh Trade and Tariff Commission on Monday held a meeting to finalise a draft to be sent to the WTO.

Sources at the meeting said the government has decided to seek legal advice from the Advisory Centre on WTO Law (ACWL), an international legal service organisation.

Commerce ministry officials firmly believe that there has been some inconsistency on the part of India in imposing the anti-dumping duties according to the terms of the WTO law.

"Hopefully, we will send a copy of the application to the ACWL by next week," said a high official of the commerce ministry seeking anonymity.

Established by the WTO in 2001, the ACWL provides legal advice on laws and dispute settlements for its members.

The ACWL will give its feedback within 30 days, according to the commerce ministry officials.

Bangladesh will then file an appeal to begin the consultation process at the WTO, they added.

Tariff Commission officials said Bangladesh has a success case against India at the Dispute Settlement Body (DSB) of the WTO.

That case is also related to anti-dumping duty against Bangladeshi batteries exported by Rahimafrooz.

After filling an appeal at DSB for consultation, India had agreed to remove the duty.

Meanwhile, Bangladesh's jute product exporters welcomed the government effort to resolve the crisis.

"It is the only way for us to survive. Otherwise the Indian government will extend the timeline after the expiry of the current five-year period," said Mahmudul Huq, deputy managing director of Janata Jute Mills Ltd.

"Indian has violated some legislative procedures. If we appeal to the World Trade Organisation, the Indian government may remove the barrier," said Shahidul Karim, secretary general of the Bangladesh Jute Spinners Association.

"Jute spinners have lost almost all of their business in the Indian market. They used to export about 1.20 lakh tonnes of yarn annually before the anti-dumping duty was imposed, but now exports have dropped to below 65,000 tonnes," he added.

"We are very confident about getting a favourable judgment from the WTO," he added.

In 2017, 30 Bangladeshi companies were exporting jute products to India and 12 of them appealed to the Indian government to review the duty imposition.

During the appeals, four companies managed to bring down the anti-dumping duties to zero or $20.68 per tonne, while eight others lost their appeals.

In the latest round, on November 11, 2019, India's Central Board of Indirect Taxes and Customs rejected the review appeals of three Bangladeshi companies.

An anti-dumping duty is a tariff imposed by a country on imports that it thinks are priced below the fair market value of similar goods. A government can impose anti-dumping duty when it believes that goods are being dumped in the domestic market to protect local businesses.

Bangladeshi exporters say that the country's jute mills and jute-spinning mills have been badly affected by India's action as the neighbouring country is a major export destination for their products.

The situation has not improved over the years despite repeated appeals by Bangladeshi exporters to India to remove the protectionist tariffs.

From 2011 to 2015, the office of the Directorate General of Anti-Dumping and Allied Duties of India asked for information from 158 Bangladeshi exporters to verify if they were dumping jute products in the country. But only 26 companies from Bangladesh provided their information. At the same time, the Indian directorate collected information from 99 Indian companies and users' associations that imported Bangladeshi jute products.

The Bangladeshi companies were asked whether the products being exported to India were also exported to other countries, what the local market prices for the product were, and the costs of production.

"As a new exporter, we submitted a review application to the Indian authorities and provided documents relating to six export consignments. Of them, five consignments were in 2016 and one was in 2017.

Unfortunately, they took the last one only in consideration and refused our appeal," said Mahmudul Huq of Janata Jute Mills Ltd.

"They didn't do justice to us. We were deprived even before the judgment process was initiated," he added.

"We spent around $25,000 to appoint an Indian lawyer but that didn't change anything," Mahmudul said.

Meanwhile, the companies that won in the appeal are unlikely to get any benefit from the removal of duties.

According to Bangladesh's Export Promotion Bureau (EPB), exports of jute goods during the last fiscal year amounted to $816.20 million.

In the first seven months of the current fiscal year, exports of jute goods reached a figure of $602.49million.

https://tbsnews.net/economy/trade/dhaka-seek-wto-intervention-against-india-next-week-47701

 

[Bilal9]

These cow belt Sanghis play hard ball.

Irony is - they claim to be our 'friends'.

They also claim to be Hindu-Hindu Bhai Bhai with Kolkata Hindus. Now they are trying to take over WB.

Bangladesh needs to play ball much harder than they currently are....

 

[Michael Corleone]

Why doesn’t Hasina place anti dumping duty on stuff exported to bd? Nuts

 

[DalalErMaNodi]

Why doesn’t Hasina place anti dumping duty on stuff exported to bd? Nuts

Because it's hasina we're talking about, Modi is her second husband... Our foreign minister Abdul 'Minoxidil' Momen confirmed as much when he said the ties between India and Bangladesh were similar to Husband-wife relationship and scuffles.

 

[Michael Corleone]

Because it's hasina we're talking about, Modi is her second husband... Our foreign minister Abdul 'Minoxidil' Momen confirmed as much when he said the ties between India and Bangladesh were similar to Husband-wife relationship and scuffles.

Mr. minoxidil has a very toxic idea of marriage

 

[DalalErMaNodi]

Mr. minoxidil has a very toxic idea of marriage

Apparently his failing marriage is the reason for his hairfall so I'm not surprised.

 

[Imran Khan]

This man has some balls standing up to Indian Ram-bhakt strong-arming tactics. Bravo!

And some friendlies we have in their govt.

Once we start imposing duty on export of raw jute, then they will start falling in line...they've been profiting off our raw jute for too long.

Abdul Barik Khan he still have khan blood and DNA