## Policy Analysis Report: Amendment to Antidumping Duty on Viscose Staple Fibre (VSF) Imports
**1. Executive Summary:**
This report analyzes a notification issued by the Ministry of Finance, Department of Revenue, Government of India, regarding an amendment to the antidumping duty imposed on imports of Viscose Staple Fibre (VSF) from China PR and Indonesia. The amendment extends the validity of the existing antidumping duty until October 31, 2021. This extension is based on a review initiated by the designated authority, DGTR, and is intended to protect domestic industries from potential injury caused by dumped imports.
**2. Introduction:**
The purpose of this report is to provide an informative overview of the amendment to Notification No. 43/2016-Customs (ADD) concerning the antidumping duty on Viscose Staple Fibre (VSF) imports. The analysis is based solely on the provided official notification text.
**3. Policy Overview:**
* **Original Policy Amended:** Notification No. 43/2016-Customs (ADD), dated August 8, 2016, imposing antidumping duty on imports of Viscose Staple Fibre (VSF) originating in or exported from China PR and Indonesia.
* **Core Objective(s):** To protect domestic industries from injury caused by dumped imports of VSF.
**4. Background and Rationale:**
The amendment extends the antidumping duty beyond its original expiration date. The likely reason for this extension is the continuation of the dumping of VSF imports from China PR and Indonesia, which could still pose a threat of injury to domestic VSF producers. The Directorate General of Trade Remedies (DGTR) initiated a review and requested an extension of the duty. This suggests that the conditions that initially justified the imposition of antidumping duty (dumping and injury to domestic industry) likely persist.
**5. Key Provisions / Changes:**
This notification constitutes an amendment. The key change introduced is:
* **Specific Part of Original Policy Changed:** Paragraph 2 of the original Notification No. 43/2016-Customs (ADD).
* **New Rule/Provision:** The antidumping duty, as outlined in the original notification, will now remain in force "up to and inclusive of the 31st October, 2021, unless revoked, superseded or amended earlier."
* **Difference/Effect of Change:** The effect of this amendment is to extend the period during which the antidumping duty is applicable. Without this amendment, the duty would have expired. The amendment provides an additional period of protection for domestic industries.
**6. Target Audience and Stakeholders:**
The target audience and stakeholders directly affected by this amendment include:
* **Domestic producers of Viscose Staple Fibre (VSF)**: Benefit from the continued protection against dumped imports.
* **Importers of VSF from China PR and Indonesia:** Face continued antidumping duties, potentially increasing their costs.
* **Consumers of VSF-containing products:** May experience indirect effects due to changes in the cost of VSF.
* **The DGTR (Directorate General of Trade Remedies):** Responsible for monitoring and reviewing the effectiveness of the antidumping duty.
**7. Implementation Aspects (Inferred):**
* **Responsible Agency/Bodies:**
* Ministry of Finance, Department of Revenue is the issuing authority.
* DGTR (Directorate General of Trade Remedies) is responsible for the review and recommendation.
* Central Board of Indirect Taxes and Customs (CBIC) likely oversees the implementation and collection of the duty.
* **Timelines:** The antidumping duty is extended until October 31, 2021. The notification is effective from the date of its issuance (June 30, 2021).
* **Specific to the change:** The implementation of the change requires customs officials to continue collecting antidumping duties on VSF imports from China PR and Indonesia until the specified date.
**8. Expected Outcomes / Impact of Changes:**
The likely intended outcome of this amendment is:
* Continued protection for domestic VSF producers from the adverse effects of dumped imports, preventing potential injury to the domestic industry.
* Maintenance of a level playing field in the domestic market for VSF.
* The impact will primarily be felt by importers, who will continue to bear the cost of the antidumping duty.
**9. Conclusion:**
The amendment to Notification No. 43/2016-Customs (ADD) extends the antidumping duty on VSF imports from China PR and Indonesia until October 31, 2021. This extension reflects the continued need to protect domestic industries from the potential injury caused by dumped imports and ensures the continued application of trade remedies to maintain fair competition in the market. The temporary extension allows time for further review and assessment of the need for continued protection.
Key Entities Referenced
Customs Tariff Act, 1975: Indian law concerning customs and tariffs.
Customs Tariff Identification, Assessment and Collection of Antidumping Duty on Dumped Articles and for Determination of Injury Rules, 1995: Rules pertaining to antidumping duty assessment in India.
China PR: Country of origin for Viscose Staple Fibre (VSF) imports subject to antidumping duty.
Indonesia: Country of origin for Viscose Staple Fibre (VSF) imports subject to antidumping duty.
Viscose Staple Fibre VSF: Product subject to antidumping duty, excluding Bamboo Fibre, Dyed Fibre, Modal Fibre and Fire-retardant Fibre.
Ministry of Finance: The Indian ministry responsible for finance.
Department of Revenue: Department under the Ministry of Finance.
New Delhi: Location of the Ministry of Finance; Union Territory of Delhi, India
DGTR: Designated authority that initiated review in terms of subsection 5 of section 9A of the Customs Tariff Act, 1975
रजिस्ट्री स.ं डी.एल.- 33004/99 REGD. No. D. L.-33004/99
सी.जी.-डी.एल.-अ.-30062021-228017
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असाधारण
EXTRAORDINARY
भाग II—खण् ड 3—उप-खण्ड (i)
PART II—Section 3—Sub-section (i)
प्राजधकार स ेप्रकाजित
PUBLISHED BY AUTHORITY
स.ं 365] नई दिल्ली, ुधिार, िनू 30, 2021/आषाढ़ 9, 1943
No. 365] NEW DELHI, WEDNESDAY, JUNE 30, 2021/ASHADHA 9, 1943
जित्त मत्रं ालय
(रािस्ट्ि जिभाग
अजधसचू ना
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[इा.सं.-सी ीआईसी-190354/74/2021– ीओ-( ीआरय-ू । -सी ीईसी]
गौरि ससंह, उप सजचि
नन प्रधान अजधसूचना सं् या 43/2016-सीमा िुल् क (एडीडी , दिनांक 8 अगस्ट् त, 2016 कन सा.का.जन. 777 (अ ,
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गया था ।
MINISTRY OF FINANCE
(Department of Revenue)
NOTIFICATION
New Delhi, the 30th June, 2021
No. 39/2021-Customs (ADD)
G.S.R. 455(E).—Whereas, the designated authority vide initiation notification No. 7/03/2021-
DGTR dated 22.02.2021, published in the Gazette of India, Extraordinary, Part I, Section 1, dated the
22nd February, 2021, has initiated review in terms of sub-section (5) of section 9A of the Customs Tariff
Act, 1975 (51 of 1975) (hereinafter referred to as the Customs Tariff Act) read with rule 23 of the Customs
Tariff (Identification, Assessment and Collection of Anti-dumping Duty on Dumped Articles and for
Determination of Injury) Rules, 1995 (hereinafter referred to as the said rules), in the matter of continuation
of anti-dumping duty on imports of “Viscose Staple Fibre (VSF) excluding Bamboo Fibre, Dyed Fibre,
Modal Fibre & Fire-retardant Fibre”, originating in or exported from China PR and Indonesia, imposed
vide notification of the Government of India, in the Ministry of Finance (Department of Revenue) No.
43/2016-Customs(ADD), dated 8th August, 2016, published in the Gazette of India, Extraordinary, Part II,
Section 3, Sub-section (i), vide number G.S.R. 777(E), dated the 8th August, 2016, and has requested for
extension of the said anti-dumping duty in terms of sub-section (5) of section 9A of the Customs Tariff Act.
Now, therefore, in exercise of the powers conferred by sub-sections (1) and (5) of section 9A of the
Customs Tariff Act, read with rules 18 and 23 of the said rules, the Central Government hereby makes the
following amendment in the notification of the Government of India, in the Ministry of Finance
(Department of Revenue) No. 43/2016-Customs(ADD), dated 8th August, 2016, published in the Gazette[भाग II—खण् ड 3(i)] भारत का रािपत्र असाधारण 3
of India, Extraordinary, Part II, Section 3, Sub-section (i), vide number G.S.R. 777(E), dated the
8th August, 2016, namely :-
In the said notification, after paragraph 2 and before the Explanation, the following paragraph shall be
inserted, namely-
“3. Notwithstanding anything contained in paragraph 2, the anti-dumping duty shall remain in force
up to and inclusive of the 31st October, 2021, unless revoked, superseded or amended earlier.”.
[F. No. CBIC-190354/74/2021-TO(TRU-I)-CBEC]
GAURAV SINGH, Dy. Secy.
Note: The principal notification No. 43/2016-Customs (ADD), dated the 8th August, 2016 was published
in the Gazette of India, Extraordinary, Part II, Section 3, Sub-section (i), vide number G.S.R. 777(E),
dated the 8th August, 2016.
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