The Department of Chemicals and Petrochemicals (DCPC) has said that extension of anti-dumping duty on the import of aniline from Japan and the US will help in the collection of a definitive and final levy.

The DCPC has suggested to the Ministry of Finance extension of duty on a request by Hindustan Organic Chemicals Limited (HOCL) in this regard.

\"It is evident that definitive/final anti-dumping duty can be collected only for a period of five years from the date of its imposition. The period of five years is to be computed from date of imposition of anti-dumping duty. Collection beyond that period is permissible only when the said levy is extended by a notification either for further period of five years or for one year. Thus a definitive or final anti-dumping duty can be collected beyond the stipulated period only when a notification extended the levy has been issued,\" the DCPC said.

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.