India Writes To EU Dubbing Duty On HR Coils As Discriminatory

New Delhi, July 29 | Updated: Jul 31 2004, 05:29am hrs
India has challenged the anti-dumping duties im-posed by the European Union on imports of hot-rolled (HR) coils from the country on grounds of discrimination.

In a communication submitted to the EU and the chairman of the dispute settlement body (DSB) of the World Trade Organisation, India has contended that since anti-dumping duties have not been imposed on Egypt, Slovakia and Turkey, also found responsible for dumping and causing injury to domestic producers in the EU, there was no justification behind imposition of duties on Indian exporters. It has requested consultations with the EU on the issue.

The EU initiated anti-dumping proceedings against the Indian HR Coils in January 1999 and definitive dumping duties were imposed on February 4, 2000. While Tata Iron and Steel Company escaped imposition of duties, Steel Authority of India Ltd, Essar Steel, Jindal and Ispat have been subjected to anti-dumping duties of 11.5 per cent, 1.5 per cent, 18.1 per cent and 14 per cent, respectively.

According to industry sources, because of the dumping duty, the exports of HR coils shifted from EU in 2001. However, when global prices rose in 2002, exports were resumed. To avoid paying anti-dumping duties, all Indian exporters have accepted minimum price undertakings, sources added. The review of the undertakings is due in 2005. Exporters are optimistic that the governments move would yield positive results. If anti-dumping duties are removed, exporters will have the option of not giving price undertakings.

Building its case for removal of duties, India pointed out in the communication that following the imposition of anti-dumping duties on India, Bulgaria, South Africa, Taiwan and Yugoslavia, the EU initiated a new anti-dumping proceeding in respect of HR Coils originating in Iran, Libya, Hungary, Egypt, Slovakia and Turkey.

On February 21, 2003, the EU issued a proposal for a Council regulation imposing definitive anti-dumping duties on HR Coils originating in Egypt, Slovakia and Turkey.

However, on March 20, 2003, the original anti-dumping investigation initiated against Egypt, Slovakia, Turkey, Libya, Iran and Hungary, lapsed without imposition of measures due to a failure by the Council to adopt the proposal within the necessary time limits.