NTC begins probe against Uzbek companies: Dumping charges
By Muhammad Ilyas
ISLAMABAD, March 17: National Tariff Commission has initiated investigation against some companies of Uzbekistan over the local industry's complaint that they were dumping Acrylic Tow into Pakistan.
In the fourth investigation undertaken by it since the enactment of Anti-dumping Ordinance, 2000, the commission has asked the interested parties to apply for registration within 10 days after publication of the notice.
Subsequent to that, it will send questionnaires to the known exporters, foreign producers and importers of the investigated product, asking them to provide information within 37 days.
The complainants in this case are M/s Dewan Salman Fibre Limited who produce Acrylic Tow. This substance is mainly used as an input by carpet and woollen material industries and is classified under Pakistan Customs Tariff Code 5501.3000.
This product, it was alleged, was being exported to Pakistan at dumped prices (prices lower than the normal value of the product, that is, the price at which it sells in Uzbekistan in the ordinary course of trade) by: (1) Pumice Trading Corporation; (2) Pouya Tarabar; and (3) East Sea Sail Co.
Such dumping had caused injury to the domestic industry, it was asserted. The complaint was supplemented by statistics which showed that the total imports of Acrylic Tow amounted to 4,390 tons. These went up to 5,473 tons in 2001-02 and to 8,461 tons in 2002-03.
The share of Uzbekistan in these imports was 1,574 tons (35.85 per cent) in 2000-01. It rose to 1,600 tons in 2001-02 (29.23pc), and to 2,316 tons (27.27pc) in 2002-03. In the period July- December, 2003, Pakistan imported 6,017 tons out of which 932 tons (15.47pc) was brought from Uzbekistan.
The law, which is aimed to give effect in Pakistan to WTO Agreement on Anti-dumping, provides a clear procedure with definite deadlines to be followed by the commission.
Accordingly, the Commission is expected to make a preliminary determination no sooner than 60 days from the date of initiation of investigation, i.e. publication of notice so as to provide to interested parties the fullest opportunity to defend their interests also at the initial stage.
In case the preliminary determination is affirmative, a provisional anti-dumping duty (equal to the amount of dumping margin) may be applied for a period of 4 months.
After such determination, an opportunity is provided to interested parties (which ordinarily includes foreign producers, exporters, importers and the domestic industry) to present their views in a hearing, if any of the parties so desires. Interested parties can also submit post-hearing briefs containing their views on a particular issue or issues.
The commission, says the relevant law, shall satisfy itself of the accuracy of information provided by interested parties. In this regard, it may conduct on-the-spot verification (with the consent of the parties involved) to verify the information.
In this connection, it may ask for further data/information (by sending supplementary questionnaire) from the foreign producers, exporters, importers and the domestic industry.
Where an interested party does not respond to the questionnaire or other request for information, Section 32 of the Ordinance authorises the Commission to use the best information that may be available.
The final determination will be made by the Commission no later than 6 months from the date of publication of notice of preliminary determination. If it concludes that the domestic price in the exporting country is higher than the export price and that the domestic industry has, consequently, been injured and that there exists a causal link between dumping and injury, the final anti-dumping duty may be imposed at a rate equivalent to the dumping margin for a period of up to five years.
This finding is subject to review any time after two years. But should the final determination be negative, the investigation would be terminated. A notice of final determination is published in official gazette and in one leading Urdu and one leading English newspaper.
Such notice, as further required under the Ordinance, contains, besides the names of exporters and description of investigated product, the amount of dumping margin found to exist and the basis for such determination and the factors that have led to the determination of injury.
If any of the interested parties is/are not satisfied with the Commission's decision, they may approach the Appellate Tribunal, headed by a retired Supreme Court Judge.
