Commodities

DGTR recommends anti-dumping duty on ceramic ware from Malaysia to check circumvention

Amiti Sen New Delhi | Updated on August 05, 2021

Establishes that Chinese ceramics being routed through Malaysia into India to avoid paying existing penal duties on imports from China

The Directorate General of Trade Remedies has recommended that the existing anti-dumping duties on import of ceramic tableware and kitchenware (excluding knives and toilet items) from China should be extended to imports of similar items from Malaysia as well as it has established that Chinese items are being routed through Malaysia to avoid the penal duties.

The final findings follow an anti-circumvention investigation carried out by the authority based on the domestic industry’s contention that ceramic tableware and kitchenware being produced in China were just “incrementally” being processed in Malaysia and then being exported to India, declared as originating in Malaysia to avoid payment of anti dumping duty.

Low-priced

Anti-dumping duties were imposed on ceramic tableware and kitchenware from China, provisionally in 2017 followed by final determination in 2018, after following due multilateral process. It was conclusively proved by the DGTR that imports of the items into India were taking place at prices below the value it was being sold in China and, in turn, it was causing injury to the domestic industry.

Also read: ‘The worst is over for ceramic industry’

In the present case, the DGTR observed that since the imposition of anti-dumping duties on ceramic items from China in 2017, imports of the items had increased significantly from Malaysia, and that from China had declined. “There appears no economic justification other than imposition of duties for such change in pattern of trade,” the DGTR ruled. It recommended anti-dumping duties at $1.32 per kg on import of ceramic tableware and kitchenware from Malaysia, on the lines of the existing final anti-dumping duties on the specified items from China. The anti-dumping duties on the imported items from Malaysia will be co-terminus with the duties on China that were imposed for five years starting June 2017.

The anti-dumping duties will be applicable once they are notified by the Finance Ministry.

The DGTR observed that since the imposition of anti-dumping duties on ceramic items imported from China in 2017- 18, imports from Malaysia started and captured a market of 5.74 per cent, whereas that same year, the domestic industry could only increase its share by 1.43 per cent. “The Malaysian imports have reached level of 12.16 per cent by the period of investigation (April 2019-March 2020) and share of China had declined by almost the same proportion,” the DGTR report stated.

The Ceramic Tableware & Kitchenware Manufacturers Association, which filed the appeal for anti-circumvention investigation, pointed out that exporters from Malaysia were not able to fulfil the conditions prescribed to claim country of origin and value addition under the Malaysia-India Comprehensive Economic Cooperation Agreement and were not claiming any concession on applicable duties. This was shown as further proof of adequate value addition not taking place reinforcing the claim that it was Chinese ceramic ware that was being routed through Malaysia.

Published on August 05, 2021

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