DCPC awaits DG (ADD) recommendation on aniline issue of HOCL

By Indian Chemical News
Published: Tue, 15 Nov 2011 | Category: Chemical
The Department of Chemicals and Petrochemicals (DCPC) is awaiting recommendation of the DG (anti-dumping duty) on the issue of anti-dumping duty on the import of aniline as requested by Hindustan Organic Chemicals Limited (HOCL).



The DCPC had approached the Ministry of Finance extension of anti-dumping duty on the import of aniline from Japan and the US and was told that any decision in this regard is taken based on specific recommendation by the designated authority.



"Such extension is allowed on specific recommendation made by the designated authority in this regard. In the present case, no such recommendation has been made by the designated authority so far," the Ministry of Finance said in a letter to the DCPC.



The DCPC said it will await recommendation of DG (ADD) on the aniline issue of HOCL.



HOCL had approached the DG (anti-dumping duty) for further continuation of anti-dumping duty on the import of aniline being originated from Japan and the US. The DG, ADD has initiated sunset review of levy ADD on the said product for extension of duty already in place by another five years.



The Finance Ministry had recently issued a notification stating that the anti-dumping duties in force shall expire on completion of five years or such extended time as the Central government may notify. Thus, in a situation where the designated authority has initiated an investigation, or conducting a sunset review or has notified the final findings, no anti-dumping duty shall be payable, if the relevant ministry of finance notification expires and the revised notification has not been issued.



In its letter to the DCPC, HOCL had said, “It would be seen that the rules permit extension of anti-dumping duty by at least one year pending outcome of the review enquiry. However, the ministry of finance has not yet issued notification extending anti-dumping duties. In the meantime, the recent notification by the finance ministry has led to cessation of anti-dumping duty on our product Aniline, even when the designated authority is at present conducting anti-dumping investigations.”



In view of the above, the HOCL requested that the matter be taken up with the Ministry of finance for a) extension of anti-dumping duty, pending outcome of enquiry; and b) evolving a mechanism so that anti-dumping duty does not lapse when the investigation is in progress.