Pakistan imposes fresh ADD on imports from Bangladesh

Jasim Uddin | Published: 22:21, Sep 25,2020


Pakistan has again imposed anti-dumping duty at an increased rate on import of hydrogen peroxide from Bangladesh.

The National Tariff Commission of Pakistan issued a notice on August 26 imposing ADD at two rates — 15.38 per cent and 16.10 per cent depending on the companies — for five more years on hydrogen peroxide produced by Bangladeshi companies after carrying out a review for change of circumstances.

Earlier in October 16, 2015, the NTC imposed a definitive ADD on imports of the product from Bangladesh for five years at 10.67 per cent and 12.14 per cent depending on the company.

The five-year tenure was scheduled to expire on October 15, 2020.

Bangladeshi exporters, however, said that the NTC had imposed the duty without taking into consideration the response and documents provided to the commission by them.

This will hamper Bangladesh’s export of the product to the country as additional duty will make the product costlier for Pakistani importers, they said.

Although there is a scope for filing appeals against the decision, local exporters are hesitant to move forward due to lack of cooperation from Pakistani authorities, they alleged. 

The Bangladesh Trade and Tariff Commission, however, has advised the exporters to file appeals against the decision. The BTTC has also assured the exporters that necessary assistance would be extended in this regard.

Officials of the companies said that they would take the decision after analysing the situation.

HP is used as a bleaching agent in the textile industry, paper and pulp industry, for sterilising packaging material of milk, fruit juice (aseptic packaging) industry, and for the general purpose of oxidising, detoxifying and as a deodorising agent. It is also  used for waste paper treatment and soil remediation.

Samuda Chemical Complex Ltd, Tasnim Chemical Complex Ltd and ASM Chemical Industries Ltd are the major exporters of the product while the main export destinations of the product are India and Pakistan.

Earlier in June, 2017, India imposed ADD on Bangladeshi HP at varying rates between $46.90 per tonne and $91.47 per tonne depending on the company.

In the last fiscal year 2019-2020, Bangladesh exported HP worth $27 lakh to Pakistan, up by 9 per cent from the previous FY2019.

According to the NTC notice, it had conducted a review for change of circumstances of the anti-dumping duty imposed earlier following applications submitted by two local manufacturers — Descon Oxychem Ltd and Sitara Peroxide Ltd.

The commission determined the dumping margin considering factors like increase in gas price in Bangladesh, oversupply on the local market of Bangladesh, export price, absorption of ADD and the duty imposed by India, it said.

In the latest move, the commission increased the duty to 16.10 per cent from the previous 12.14 per cent for Tasnim Chemical, to 15.38 per cent from the previous 10.67 per cent for Samuda Chemical and to 16.10 per cent for other companies.

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 on its domestic market.

The importing country then can impose ADD to protect its local industry if it finds proof of dumping which injures the local industry.

Samuda Chemical chief financial officer Mohammad Akramuzzaman told New Age on Thursday that they had sought documents from the NTC related to calculation of the duty and injury caused to Pakistani manufacturers due to the alleged dumping from Bangladesh but the authorities had yet to share the documents.

He said that they were not interested to appeal again at the expense of huge foreign currency as it might not bring about any positive outcome as was the case in previous efforts when the company had filed appeals which had remained pending without hearing.

He said that the new ADD would now severely affect the export of HP to Pakistan as it would increase the export price.

Tasnim Chemical senior deputy general manager Manirul Islam also shared similar views and said that his company had submitted all the necessary documents to the NTC but the commission had not taken them into consideration.

Production of Pakistan’s local companies has increased during the investigation period and prices of their products have also increased in the period, he said.

It proves that Pakistan’s local companies were not affected or injured, which is the main criterion for imposing ADD, by Bangladesh’s exports, he argued.

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