SC approves continuation of anti-dumping duty

New Delhi, Mar 30 (UNI) The Supreme Court has approved continuation of imposition of anti-dumping duties on foreign companies for a further period of 5 years as per the orders of the designated authority.

A bench comprising Justice Mr. Ashok Bhan and Justice Mr. G P Mathur vide judgement dated March 23rd dismissed a bunch of petitions filed by Korean companies and others challenging the extension of time for imposition of anti-dumping duty on the goods dumped by these companies in India.

The court, however allowed the companies to pay in Rupee term instead of US dollar term after the Centre said it has no objection if the anti-dumping duty is charged in Rupee term.

The members of WTO and those having most Favoured Nations (FNA) agreement with India are exempted from levying anti-dumping duty on articles imported from these countries.

The anti-dumping duty is imposed to level the playing field for the domestic industry by compensating it for injury and damages caused to it due to dumping of such goods for being sold at a cheaper price.

M/S Korea Kumho petrochemicals limited has been dumping oil-resistant products known as NBR. The rubber is synthetic rubber used in the manufacture of other rubber articles such as oilseals, hoses , automobile products, rice, dehusking and rolls.

The designated authority after considering all the relevant factors during the review decided to continue with the imposition of anti-dumping duty for another five years as the foreign companies mainly from Korea and Germany were not likely to stop the process of dumping and as a result of which the dumpimg process shall continue to cause loss and injury to the domestic industry.

The court also took note of the fact that the designated authority in the mid-term review had on its own reduced the anti-dumping duty to US $ 248 per metric tonne. The court also rejected the contention of the appellant that dumping of goods by Japan was also responsible.

The appellants had come in appeal against the order of the customs, excise and gold (Control) appellate Tribunal (CEGAT).

UNI AKS/SC SY RP DS1648