The Union Budget 2021 has proposed some significant changes in the provisions relating to anti-circumvention measures under the anti-dumping and countervailing duties law.
As per changes proposed by clauses 93 and 94 of the Finance Bill, 2021 in Sections 9 and 9A of the Customs Tariff Act, 1975, anti-dumping and countervailing duties after anti-circumvention investigation cannot be imposed for the period before the date of initiation of the anti-circumvention investigation.
It may be noted that Rule 27 of the Customs Tariff (Identification, Assessment and Collection of Anti-Dumping Duty on Dumped Articles and for Determination of Injury) Rules, 1995 (‘Anti-dumping Rules’) and Customs Tariff (Identification, Assessment and Collection of Countervailing Duty on Subsidized Articles and for Determination Of Injury) Rules, 1995 (‘Anti-countervailing Rules’) already provide that levy may apply retrospectively from the date of initiation of the investigation.
Further, as per amendments which have come into effect in both the Anti-dumping Rules and the Anti-countervailing Rules, the Central Government can on the recommendation of the designated authority, resort to provisional assessment of the imports of the article alleged to be circumventing an anti-dumping duty or countervailing duty in force and may ask a guarantee from the importer.
This provisional assessment can continue until the Central Government concludes the investigation extending the anti-dumping duty or countervailing duty to circumventing products.
Sub-rule (4A) has been inserted in Rule 26 of both the above-mentioned rules for this purpose by Notifications Nos. 10 and 11/2021-Cus. (N.T.), both dated 1 February 2021 and effective from 2 February 2021.