Bangladesh has decided to request India for a review of the anti-dumping duty the Indian government imposed on import of jute goods from Bangladesh.
The imposition of the duty hit hard Bangladesh’s export earnings from its neighbouring country against products including jute yarn, twine, sacks, bags and fabrics as the exports of jute products to India slumped by 52.15 per cent to $7.65 million in January this year from $15.99 million in the same month of last year.
The commerce ministry has already asked the Bangladesh Tariff Commission to take necessary preparations for filing a review application with the Indian authorities.
Indian finance ministry on January 5 imposed the duty ranging from $19 to $351.72 a tonne on jute and jute goods from Bangladesh for five years following an investigation of India’s Directorate General of Anti-Dumping and Allied Duties for an alleged dumping of the products in the Indian market by Bangladeshi exporters.
Commerce ministry officials said that the BTC on Wednesday held a meeting with local stakeholders including jute growers, exporters and sector leaders to convey the government’s decision on the issue and to seek opinions from them.
At the meeting, stakeholders agreed to the government decision to request for a review, they said.
The government has also suggested that the aggrieved exporters file appeals with the relevant Indian authorities against the duty imposition by April 5 — the stipulated deadline for submitting pleas.
The officials said that some of the manufacturers-exporters had already started preparations including appointment of lawyers for filing the appeal.
On the other hand, the government will try to resolve the problem by seeking a review of the decision, they said.
Under the review system, the government will argue that the circumstances under which India imposed the duty have changed such as export prices of the products have increased by this time.
Seeking a review means filing a report explaining the situations — the current and those existed in the investigation period (April 2014 and March 2015), an official of the commerce ministry told New Age.
The DGAD will again conduct a complete investigation, if the review appeal is accepted, and settle the review application within one year, he said.
He said that the outcomes of the review might include withdrawal of the duty, reduction in the rate of duty and years of its applicability.
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 at its domestic market.
BTC officials said that they sought some information and documents from 17 local exporters, who are hit by the duty imposition, as part of filing the review application.
They have been asked to furnish within 15 days the information including post-investigation export prices, detailed information which they gave to the DGAD and details of production of Indian producers who brought the dumping allegation against Bangladesh, he said.
Bangladesh Jute Spinners Association vice-president Abul Hossain told New Age that the government was trying to resolve the problem through discussion.
The government and exporters are also taking various steps to get a positive result and hopefully a good result will come, he said.
Want stories like this in your inbox?
Sign up to exclusive daily email
More Stories from Trade & Commerce