An Indian appellate tribunal on customs has rejected appeals of Bangladesh jute goods exporters against anti-dumping duty imposed by the authorities of the neighbouring country on jute goods.
Customs, Excise and Service Tax Appellate Tribunal of India issued the order on October 9, rejecting appeals filed by five local millers and Jute Products Importers’ Association of India against the anti-dumping duty—ranging between $19 and $352 per tonne – on jute goods from Bangladesh.
The Indian Customs authority imposed the anti-dumping duty on jute goods from Bangladesh on January 5 based on report of the Directorate General of Anti-Dumping and Allied Duties of India.
Moniruzzaman Monir, managing director of Pride Jute Mills Ltd, one of the companies that appealed against the imposition of anti dumping duty told reporters that they would be out of business because of the rejection of their appeals by the Indian tribunal.
‘This is really a bad news for us. We have been exporting jute goods to India year after year. Now, we will not be able to do business with India,’ he said.
Anwar Jute Spinning Mills Ltd, Sidlaw Textile Bangladesh Ltd, Sagar Jute Spinning Mills Ltd and Sharif Jute Mills Ltd were the rest of the factories those appealed for review of the anti dumping duty.
The DGAD had conducted investigation based on complaints from the Indian Jute Mills Association that Bangladeshi exporters were selling jute products at prices lower than those in India’s domestic market.
DGAD had come to the conclusion that there was ‘dumping’ of goods and the imports were ‘undercutting and suppressing the prices of the domestic industry’.
It said Indian jute producers were failing to compete with the imports, as Bangladeshi jute growers get 10 per cent cash incentives.
Monir, also director of Bangladesh Jute Spinners Association, said jute and jute goods are one of the main items that Bangladesh exports to the neighbouring country.
‘Our shipment helped reduce trade imbalance with India to some extent. The bilateral trade imbalance will rise following the order of dismissal,’ he said.
‘Now we have little to do at our levels. It may help if initiatives are taken from the highest authority of the government,’ he said.
On the issue, a senior official of Bangladesh Tariff Commission said the government may consider requesting Indian anti-dumping authority to review the decision.
Jute is the third largest export earning sector of Bangladesh, after garments and leather, and India is one of the biggest markets for jute goods.
India accounted for 17 per cent, or 1.41 lakh tonnes out of 8.25 lakh tonnes of jute goods exported in fiscal 2015-16, according to data compiled by the Department of Jute.
Considering overall exports worth $689 million to India, the share of jute and jute goods was 37 per cent in fiscal 2015-16, according to data from the Federation of Bangladesh Chambers of Commerce and Industry.
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