Jute products are primarily used in packaging; geotextiles like landfill covering, and embankment reinforcement; protection of rooting plants; handbags, and all types of stiff bags
India has extended anti-dumping duty on imports of certain jute products from Nepal and Bangladesh for five years, a move aimed at protecting domestic players from cheap inbound shipments.
These duties were imposed following recommendations of the commerce ministry’s investigation arm Directorate General of Trade Remedies (DGTR).
The DGTR, in its probe in September last year, concluded that there is continued dumping of these products from Nepal and Bangladesh and the imports are likely to enter the Indian market at dumped prices in the event of cessation of existing duty.
It had recommended continued imposition of the anti-dumping duty on the imports to remove injury to the domestic industry.
According to a notification of the Central Board of Indirect Taxes and Customs (CBIC), the duty imposed “shall be levied for a period of five years (unless revoked, superseded or amended earlier)”.
The duty ranges between USD 6.3 per tonne and USD 351.72 per tonne. It is applicable to products like jute yarn/twine, sacking bags and hessian fabric. While the DGTR conducts the probe and recommends the duty, the finance ministry takes the final decision to impose the same.
Jute products are primarily used in packaging; geotextiles like landfill covering, and embankment reinforcement; protection of rooting plants; handbags, and all types of stiff bags.
Indian Jute Mills Association (IJMA) had repeatedly complained about the dumping and illegal import of jute products from Bangladesh and Nepal.
In international trade parlance, dumping happens when a country or a firm exports an item at a price lower than the price of that product in its domestic market.
Dumping impacts the price of that product in the importing country, hitting the margins and profits of manufacturing firms in the country.
According to global trade norms, a country is allowed to impose tariffs on such dumped products to provide a level-playing field to domestic manufacturers. The duty is imposed only after a thorough investigation by a quasi-judicial body, such as DGTR, in India.
The duty is aimed at ensuring fair trading practices and creating a level-playing field for domestic producers vis-a-vis foreign producers and exporters.
