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K.R. Srivats

Also to assist in anti-money laundering law compliance litigations

New Delhi , Jan. 14

In a significant attempt to help the exporting community, the Government has now decided to extend financial assistance to exporters for contesting anti-dumping duty related litigations in foreign countries.

The financial assistance would come through the market access initiative (MAI) scheme, which has been comprehensively revised earlier this month by the Commerce and Industry Ministry.

Official sources said that a 12-member Empowered Committee, chaired by the Commerce Secretary, would decide the commodity/product groups, nature of litigation to be supported and also the extent of support on a case-to-case basis.

Legal Costs

"The support would not exceed 50 per cent of the actual expenditure subject to an upper ceiling of Rs 2 crore in each case," sources said.

Besides litigation on anti-dumping duty, the MAI scheme would also extend financial support on litigations relating to anti-money laundering law compliance.

Exporters from India often end up fighting legal cases on the anti-dumping action of foreign countries against products of Indian origin. Only financially strong industry associations are able to bear the legal costs. These associations use their internal accruals and also contributions from member exporters to sign up foreign lawyers. The Government was so far not offering any financial assistance to meet the legal costs.

Expenditures Allowed

"So far, financial assistance was available only for anti-subsidy cases. Now MAI assistance would also cover anti-dumping duty and anti-money laundering laws compliance litigations," Mr Ajai Sahai, Director General of Federation of Indian Export Organisations, told Business Line.

He also highlighted that expenditures allowed for various activities under the MAI have been revised upwards to realistic limits and this would help exporters to scale up their promotional activities abroad.

Last month, the Cabinet Committee on Economic Affairs had approved amendments to the MAI scheme to widen its scope to include assistance for organising trade festival of India in select centres abroad, capacity building and undertaking trade-related studies.

Initiations

India's merchandise exports are expected to touch $128.4 billion in 2007. In the first half of 2006 (January-June), 20 member countries of the World Trade Organisation had initiated a total of 87 new anti-dumping investigations, down from 105 during the same period of the previous year.

Developed countries opened 31 of the 87 new initiations. India had undertaken 20 initiations, the most number of initiations, up from 14 during the same period of the previous year. Fewer than four new investigations were directed at Indian products for the period under review.

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India tops in using anti-dumping probes as trade defensive tool

More Stories on : Anti-dumping | Exports & Imports | Policy | Courts/Legal Issues

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Govt to help exporters financially to contest dumping cases abroad

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