ISLAMABAD, July 29: The levy of anti-dumping duty by the National Tariff Commission (NTC) on the tin-plates imported from South Africa may result in increase of price of ghee packed in relevant tin-plate by only 0.5 per cent but its benefits for the industry as a whole are immense.

Explaining the circumstances in which the first case under anti-dumping law was decided vis-a‘-vis the South African exporters of tin-plates, NTC Chairman Dr Faizullah Khilji told Dawn here on Monday that he was encouraged by the feedback on the case.

Many industries had informed him that other exporters of the specific tin-plate (of thickness of less than 0.5 mm and of width of 600 mm or more used for packing of vegetable ghee) of Australia and Europe had stopped indulging in under-invoicing to avoid action under the anti-dumping ordinance.

Although the commission had received complaints from many other industries, the one received from Siddiqsons requesting action against the South African exporters was the only one that fulfilled all the requirements of law.

The application was received last February and examined by NTC under Section 20 of Anti-dumping Duties Ordinance 2000.

In response to a notice, the exporter, foreign producer and importer’s association requested two-week extension in the time limit for submission of their reply to the questionnaire. The exporter and foreign producer provided data/information within the extended period of time through a lawyer based in Brussels. The importer’s association, however, furnished no data on the questionnaire.

The commission, Dr Khilji said, determined dumping margin by comparing weighted average normal value to weighted average export price in accordance with section 12 of the Ordinance. The dumping margin established during preliminary determination came to 33.19 per cent and as percentage of export price, it works out to be 23.91 per cent.

Accordingly, the NTC imposed a provisional anti-dumping duty of 23.91 per cent on import of tin-plate exported by South Africa for a period of four months as follows:

The share of dumped imports from S. Africa in total domestic market is 17 per cent and that in total imports of tin-plate of the stated specification are 31.48 per cent. Thus the landed cost of only 17 per cent of total market demand will be affected by the imposition of provisional anti-dumping duty. The prices of tin-plate from other sources and of domestically produced tin-plate are expected to remain unchanged.

As regards the impact of duty of affected tin-plate, the NTC chairman explained that packing constitutes only less than 5 per cent of total cost of tinned vegetable ghee.

Asked about the chances of other industries now under pressure of unfair competition implicit in dumping practices, he said they would be welcome to submit their applications. But these applications must be complete with adequate and correct information.

The entire procedure had to be entirely transparent and the party proceeded against has the right to inspect the records that became the basis of NTC’s decision.

He also expressed the hope that the lawyers would lend their full support to the domestic industry in safeguarding their interests against dumping and other unethical practices by foreign competitors.