ISLAMABAD, Feb 25: The National Tariff Commission has levied provisional anti-dumping duty at the rate of 13.77 per cent on glacial acetic acid (GAA) exported by a Taiwanese firm , Chang Chun Petrochemical Company, according to an official announcement here on Wednesday.
The levy, following complaint by a domestic producer of the same product, Wah Nobel Acetates Ltd, has been imposed for a period of four months. This is the third investigation conducted by the NTC under the Anti-Dumping Duties Ordinance, 2000. The earlier two investigations culminated in imposition of anti-dumping duties on importers concerned.
Glacial acetic acid is used in the manufacture of cellulose acetate fibre, PTA, ester solvents, dyes and metal salts, textile processing and pharmaceuticals.
The NTC had initiated investigation against Chang Chun Petrochemical under the Pakistani Anti-Dumping Duties Ordinance, 2000 in September 2003.
The first step, NTC chairman Dr Faizullah Khilji recalled, was the dispatch of questionnaires to the company complained against. They were asked to provide information within the statutory time period of 37 days.
The officers of the commission carried out on-the-spot investigations at the premises of the domestic industry and at those of exporter/foreign producer in September and December 2003, respectively, to verify the information/data provided by both the parties.
The investigations unfolded figures which showed that the exports by Chang Chun Petrochemical far outstripped imports of GAA from all other sources (excluding the imports by Pakistan PTA Ltd with which the government has a special arrangement providing for concessionary rate of customs duty) over a period of three years.
Thus out of total imports of 3,503 tons in 2000-01, those from Taiwan stood at 3,212 tons, that is, 91.69 per cent. In 2001-02, the proportion of exports of GAA from Taiwan rose further and accounted for 95.02 per cent of total exports of 5,087 tons.
The quantity of GAA imported into Pakistan rose to 8,552 tons. Out of this, as much as 7,717 tons was exported by Chang Chun Petrochemical. The commission has made the preliminary determination that GAA, classified under Pakistan Customs Tariff (PCT) Code 2915.2100, is being exported to Pakistan at dumped prices.
The imposition of provisional anti-dumping duty, however, represents only the preliminary determination. After this, the NTC provides to the interested parties (which ordinarily includes exporters, importers and the domestic industry) the opportunity to present their views in a hearing, if any, if they so desire.
They can also submit post-hearing briefs containing their views on a particular issue or issues to the commission. The ordinance requires the commission to make the final determination no later than six months from the date of publication of notice of preliminary determination.
If the final determination too established that the normal value is higher than its export price and that the impugned imports had indeed caused injury to the domestic industry, the commission may impose final anti-dumping duty on the dumped imports equivalent to the dumping margin for a period of up to five years.
In case, any of the interested parties is not satisfied with the NTC's final determination and the decision of imposition of definitive anti-dumping duty, it may approach the Appellate Tribunal which is headed by a retired Supreme Court judge.
Alternatively, any affected exporting government may, in case of positive final determination, approach the WTO Dispute Settlement Body (DSB) in Geneva. The DSB may then set up a panel to adjudicate.
In reply to a question, Dr Khilji said the final determinations by the commission in earlier two cases had remained unchallenged, obviating the need to set up the Appellate Tribunal.