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Pakistan imposes fresh ADD on HYDROGEN PEROXIDE imports from Bangladesh

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HYDROGEN PEROXIDE
Pakistan imposes fresh ADD on imports from Bangladesh
Jasim Uddin | Published: 22:21, Sep 25,2020


Pakistan has again imposed anti-dumping duty at an increased rate on import of hydrogen peroxide from Bangladesh.
The National Tariff Commission of Pakistan issued a notice on August 26 imposing ADD at two rates — 15.38 per cent and 16.10 per cent depending on the companies — for five more years on hydrogen peroxide produced by Bangladeshi companies after carrying out a review for change of circumstances.

Earlier in October 16, 2015, the NTC imposed a definitive ADD on imports of the product from Bangladesh for five years at 10.67 per cent and 12.14 per cent depending on the company. The five-year tenure was scheduled to expire on October 15, 2020.

Bangladeshi exporters, however, said that the NTC had imposed the duty without taking into consideration the response and documents provided to the commission by them. This will hamper Bangladesh’s export of the product to the country as additional duty will make the product costlier for Pakistani importers, they said.

Although there is a scope for filing appeals against the decision, local exporters are hesitant to move forward due to lack of cooperation from Pakistani authorities, they alleged. The Bangladesh Trade and Tariff Commission, however, has advised the exporters to file appeals against the decision. The BTTC has also assured the exporters that necessary assistance would be extended in this regard.

Officials of the companies said that they would take the decision after analysing the situation. HP is used as a bleaching agent in the textile industry, paper and pulp industry, for sterilising packaging material of milk, fruit juice (aseptic packaging) industry, and for the general purpose of oxidising, detoxifying and as a deodorising agent. It is also used for waste paper treatment and soil remediation.

Samuda Chemical Complex Ltd, Tasnim Chemical Complex Ltd and ASM Chemical Industries Ltd are the major exporters of the product while the main export destinations of the product are India and Pakistan. Earlier in June, 2017, India imposed ADD on Bangladeshi HP at varying rates between $46.90 per tonne and $91.47 per tonne depending on the company.

In the last fiscal year 2019-2020, Bangladesh exported HP worth $27 lakh to Pakistan, up by 9 per cent from the previous FY2019. According to the NTC notice, it had conducted a review for change of circumstances of the anti-dumping duty imposed earlier following applications submitted by two local manufacturers — Descon Oxychem Ltd and Sitara Peroxide Ltd.

The commission determined the dumping margin considering factors like increase in gas price in Bangladesh, oversupply on the local market of Bangladesh, export price, absorption of ADD and the duty imposed by India, it said.

In the latest move, the commission increased the duty to 16.10 per cent from the previous 12.14 per cent for Tasnim Chemical, to 15.38 per cent from the previous 10.67 per cent for Samuda Chemical and to 16.10 per cent for other companies.
Dumping occurs when a company exports a product to any country at prices lower than the normal value (the domestic price or the cost of production) of the product on its domestic market.

The importing country then can impose ADD to protect its local industry if it finds proof of dumping which injures the local industry.
Samuda Chemical chief financial officer Mohammad Akramuzzaman told New Age on Thursday that they had sought documents from the NTC related to calculation of the duty and injury caused to Pakistani manufacturers due to the alleged dumping from Bangladesh but the authorities had yet to share the documents.

He said that they were not interested to appeal again at the expense of huge foreign currency as it might not bring about any positive outcome as was the case in previous efforts when the company had filed appeals which had remained pending without hearing. He said that the new ADD would now severely affect the export of HP to Pakistan as it would increase the export price.

Tasnim Chemical senior deputy general manager Manirul Islam also shared similar views and said that his company had submitted all the necessary documents to the NTC but the commission had not taken them into consideration. Production of Pakistan’s local companies has increased during the investigation period and prices of their products have also increased in the period, he said.

It proves that Pakistan’s local companies were not affected or injured, which is the main criterion for imposing ADD, by Bangladesh’s exports, he argued.
 
We should be looking for 100% local dependance in the chemical and petrochemical segment.
This is a good move and will provide an incentive for local chemical manufactures to increase production capacity. It may be $2 million, but it is miniscule things like this which continue to add up.
Anything which can be or is manufactured in Pakistan must not be imported. In fact, regulatory and bureaucratic hurdles must be removed for local industry and incentives must be provided for them to enhance process efficiency.
 
Why are we importing hydrogen per oxide whereas it's made in abundance in Pakistan?
 
Why are we importing hydrogen per oxide whereas it's made in abundance in Pakistan?
Pakistani companies import these products from Bangladesh because the system is efficient in BD and thus the cost of production is far lower than Pakistan. Bd is certainly not dumping, but your NTC does not want to read the breakdown costing figures.

No wonder with Pakistan and India its member, SAARC is a dead forum.
 
We should be looking for 100% local dependance in the chemical and petrochemical segment.
This is a good move and will provide an incentive for local chemical manufactures to increase production capacity. It may be $2 million, but it is miniscule things like this which continue to add up.
Anything which can be or is manufactured in Pakistan must not be imported. In fact, regulatory and bureaucratic hurdles must be removed for local industry and incentives must be provided for them to enhance process efficiency.

You should post more often.
 
Pakistani companies import these products from Bangladesh because the system is efficient in BD and thus the cost of production is far lower than Pakistan. Bd is certainly not dumping, but your NTC does not want to read the breakdown costing figures.

No wonder with Pakistan and India its member, SAARC is a dead forum.

I will agree that BD is not dumping, and I'm not clear about your statement about the 'system being more efficient in BD'. The cost of production in Pakistan has increased during previous years owing to a number of reasons, some that I have described below.
Gas and energy shortages are among the primary reasons.
Pakistan's Sitara Peroxide and Descon Oxychem have world class process technology. Local installed capacity for HP is around 60,000 tons and demand fluctuates upto 80,000 tons.
Seasonal fluctuations and uncertainty in the industry caused by fierce lobbying by the textile sector for allowing HP imports has not created a favorable environment for local manufacturers to enhance capacity. Our primary issue is corruption of both financial and moral nature. The textile sector is inherently corrupt and reduction of HP imports probably caused some discomfort for entities with vested interests. Regulatory changes will eventually overpower these vested interests and create the enabling environment for local industry to achieve self sufficiency.
 
BD needs to immediately counter this by putting up tarrif on pakistani import....if there is anything...
 
No, BD should not impose any tit for tat Tariff for Indian or Pakistani goods. The situation may turn nasty. BD should keep on pressing Pakistan on the issue.

It Is India that exports six billions and imports less than one billion? Yet, India has already imposed ADD to BD export of this item. It seems BD organizational set ups are efficient enough to bring down the cost of production cheaper than both Pakistan and India.

@S A L M A N.
 
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No, BD should not impose any tit for tat Tariff. The situation may turn nasty. It is not India that exports six billions and imports less than one billion. BD should keep on pressing Pakistan on the issue.

India has already imposed ADD to BD export of this item. It seems BD organizational set ups are efficient enough to bring down the cost of production cheaper than both Pakistan and India.

@S A L M A N.

BD pakistan trade is negligible....why the hell would we not retaliate....how could it possibly turn nasty....

How does the trade imbalance with india remotely relevant in this conversation....

Pakistan put up duty..... we need to reciprocate but with much much greater magnitude....
 
BD needs to immediately counter this by putting up tarrif on pakistani import....if there is anything...

That's the good thing about no exports if you traiff a country with little influence they can't do anything but cry.
 
BD pakistan trade is negligible....why the hell would we not retaliate....how could it possibly turn nasty....

How does the trade imbalance with india remotely relevant in this conversation....

Pakistan put up duty..... we need to reciprocate but with much much greater magnitude....
A country should not react on every tiny thing on trade. We can wait and watch how our exporters do even with the imposition of ADD to our exports.
 
A country should not react on every tiny thing on trade. We can wait and watch how our exporters do even with the imposition of ADD to our exports.

That is exactly what you do if you do not want to be taken advantage off. And you double down against contries that are irrelevant to you in this case pakistan.

BD needs to immediately put up tarrif and para tarrif against whatever if it is that we import from Pakistan.
 
There is plenty of Hydrogen peroxide stock and production capacity within Pakistan. Move is to discourage imports from other countries. This is the right move and should be done with other products as well.
 
That is exactly what you do if you do not want to be taken advantage off. And you double down against contries that are irrelevant to you in this case pakistan.

BD needs to immediately put up tarrif and para tarrif against whatever if it is that we import from Pakistan.
In the last fiscal year 2019-2020, Bangladesh exported HP worth $27 lakh to Pakistan, up by 9 per cent from the previous FY2019.
BD export is only a tiny 2.7 million dollar. Pakistan is not a rich country like Europe. It needs its industries to survive. As such is the case, it has imposed a little Tariff on BD products.

India did the same. Shall BD impose Tariff on its $6 billion import from India as well?
 
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