ISLAMABAD, Sept 2: The National Tariff Commission has launched an investigation into alleged dumping in Pakistan of Glacial Acetic Acid (GAA), an industrial input, by a producer/exporter of Taiwan following a complaint by local industry.

As a result of such investigations, NTC chairman Dr Faizullah Khilji told Dawn here on Tuesday, the commission is empowered under the Anti-dumping Ordinance, 2000, to impose appropriate anti-dumping duty in the event of affirmative determination of dumping and injury.

Pakistan’s Anti-dumping Duties Ordinance is the national legislation promulgated in December 2000 to give effect in this country to the relevant WTO agreement. Pakistan, he pointed out, is a founding member of GATT 1947, the predecessor of WTO and one of its original 123 members.

In reply to a question the NTC chairman said GAA was the third anti-dumping case taken up by the commission since enactment of the ordinance. Earlier in November 2002, it imposed on M/s Mac Steel, a South African firm, the producer/exporter of tinplate, anti-dumping duty at the rate of 27pc on C&F value.

In the second investigation against dumping of Sorbitol 70pc Solution from France and Indonesia, the commission has reached a preliminary determination and imposed provisional anti-dumping duties of around 96pc and 91pc, respectively.

According to the complaint submitted by M/s Wah Nobel Acetates Limited to the NTC, the GAA, classified under Pakistan Customs Tariff Codes 2915.2100, is being exported to Pakistan at dumped prices (prices less than the normal value of the product, i.e., the price at which it sells in Taiwan in the ordinary course of trade) by M/s Chang Chun Petrochemical Company Limited, a producer/exporter of Taiwan.

Such alleged dumping had caused and was causing material injury to the domestic industry mainly by way of price under-cutting, price depression, price suppression, loss in market share, loss in capacity utilization etc., M/s Wah Nobel contended.

Major uses of GAA are in the manufacture of cellulose acetate fibre, pure terephthalic acid (PTA), ester solvents, dyes and metal salts, textile processing, pharmaceuticals etc. However, GAA accounts for a minor share in cost of production of these industries, Dr Khilji explained.

The applicant represents 100 per cent of the domestic production of GAA and, therefore, constitutes the domestic industry, according to the notice.

The commission, in its notice announcing its decision to undertake investigation, has asked the interested parties to apply for registration within 10 days of its publication.

Interested parties include exporters, foreign producer, importer, domestic producers, the government of exporting country etc.

As per the procedures laid down in the ordinance and Anti-dumping Rules, 2001, which are strictly in consonance with the WTO anti-dumping agreement, the commission is expected to send questionnaire to the known exporters, foreign producers and importers of the investigated product asking them to provide information.

After due process, i.e. once the requisite information has been received from interested parties and examined by it, the commission would reach a preliminary determination and impose provisional anti-dumping duty.

To avoid any impression of a hasty decision, the ordinance prevents the commission from making a preliminary determination sooner than 60 days and later than 180 days from the date of initiation of investigation.

In case, Dr Khilji added, an affirmative preliminary determination of dumping and injury to the domestic industry is made, a provisional anti-dumping duty (equal to the amount of dumping margin) may be applied for a period of four months.