Economy
The
directorate general of foreign trade has tweaked the import policy of major
paper products from ‘free’ to ‘free subject to compulsory registration under
the Paper Import Monitoring System
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The local paper
industry has been raising issues of dumping of paper products in the domestic
market by way of under-invoicing, entry of prohibited goods by fake
declaration, re-routing goods
through other countries in the lieu of trade agreements.
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Customs officials have
long suspected that Chinese firms may be diverting their supplies of various
products to India through Asean nations, abusing rules of origin, to illegally
take advantage of duty-free market access under the free trade agreement.
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Dumping is said to
occur when the goods are exported by a country to another country at a price
lower than the price it normally charges in its own home market.
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This is an unfair trade
practice which can have a distortive effect on international trade.
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Imposition of
anti-dumping duty is a measure to rectify the situation arising out of the
dumping of the products and its trade distortive impact.
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In the long-term,
anti-dumping duties can reduce the international competition of domestic
companies producing similar goods.
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It is a protectionist tariff that a domestic
government imposes on foreign imports that it believes are priced below fair market
value.
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The use of anti-dumping measures as an
instrument of fair competition is permitted by the World Trade Organisation.
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Rule of Origin: Rules of origin are the
criteria needed to determine the national source of a product.
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Their importance is derived
from the fact that duties and restrictions in several cases depend upon the
source of imports.
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Mentioning Countries of
origin in the Bill is relevant for regulating various areas of customs.
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Rules of origin are used: to implement measures and instruments
of commercial policy like anti-dumping duties and safeguard measures; to
determine whether imported merchandise shall receive most-favoured-nation (MFN)
treatment or preferential treatment; for the purpose of trade statistics; for
the application of the labelling and marking requirements; and for government
procurement.
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Non-preferential rules of origin Non-preferential rules of
origin are those which apply in the absence of any trade preference — thats,
when trade is conducted on a most-favoured
nation basis.
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Not all countries apply
specific legislation related to non-preferential rules of origin.
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However, some trade
policy measures such as quotas, anti-dumping or “made in” labels may require a
determination of origin and, therefore, the application of non-preferential
rules.
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Preferential rules of
origin Preferential rules or origin are those which apply in reciprocal trade
preferences (i.e. regional trade
agreements or customs unions) or in the non-reciprocal trade preferences (i.e.
preferences in favour of the developing countries or least-developed
countries).
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the rules of origin that apply under reciprocal trade
preferences or regional trade agreements conform change with the general
disciplines of Annex II of the Agreement on Rules of Origin.
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Additionally, the General Agreement on Tariffs and Trade and
therefore the Agreement on Trade Facilitation contain some provisions related
to origin requirements.
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Law in India: Finance
Act of 2020, introduced Section 28DA under the Customs Act, 1962 as an enabling
provision for administration of Rules of Origin under trade agreements.
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Customs (Administration
of Rules of Origin under Trade Agreements) Rules, 2020 -provide specific
provisions and outline a roadmap for governance of claims made under the trade
agreements by the importers of goods in India.
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Further the onus of
maintaining the requisite documents and checking the correctness & accuracy
of the Countries of origin is through reasonable care has been placed on the
importer.
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Rules of origin and WTO: Article 1 of the WTO
Agreement defines rules of origin as those laws, regulations and administrative
determinations of general application applied to determine the country of
origin of goods except those related to the granting of tariff preferences.
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Thus, the Agreement covers only rules of the origin utilized
in non-preferential commercial policy instruments, like MFN treatment,
anti-dumping and the countervailing duties, safeguard measures, origin marking
requirements and any discriminatory quantitative
restrictions or tariff quotas, as well as those used for trade statistics and
government procurement.
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It is, however, provided that the
determinations made for purposes of defining domestic industry or “like
products of domestic industry” shall not be affected by the Agreement.
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The agreement aims at long-term harmonization
of rules of origin, other than rules of origin relating to the granting of
tariff preferences, and to ensure that such rules do not themselves create
unnecessary obstacles to trade.
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The agreement sets up a harmonization
programme, to be initiated as soon as possible after the completion of the
Uruguay round and to be completed among 3 years of initiation.
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