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October 05, 2021

Anti-dumping sunset review on imports of sacks and bags of jute from India and Bangladesh

Anti-dumping sunset review on imports of sacks and bags of jute from India and Bangladesh


On September 30, Circular SECEX No. 65/2021 initiated the sunset review on the exports from India and Bangladesh of sacks and bags made of jute, commonly classified under the NCM code 6305.10.00.

These jute bags are mainly used for packaging and storage of agricultural commodities. The main crops that demand this product are coffee, sugar and cocoa, and in smaller quantities cotton, potatoes and pepper.

The petition was filed by the Institute for the Promotion of Production of Vegetable Fibres of the Amazon (Instituto de Fomento à Produção de Fibras Vegetais da Amazônia - IFIBRAM).

The analysis of the dumping’s evidence considered the period of January to December/2020 and the injury analysis considered January/2016 to December/2020.

For the purpose of the initiation of the sunset review, considering that there is a likelihood of resumption of dumping, in the case of India, the normal value CIF internalized (US$/t 5.17) was compared to the price of the domestic industry on an ex-factory basis. Thus, it was noted that the Indian domestic CIF normal value was higher than the ex-factory price of the domestic industry, and it was possible to conclude that there were indications showing the likelihood of resumption of the dumping by Indian producers/exporters if the anti-dumping duty were not extended, since these producers/exporters would need to practice prices lower than the normal value in their sacks and bags of jute exports to Brazil, in order to be competitive on the Brazilian market, and therefore resume dumping in their exports to Brazil.

The same methodology was applied for Bangladesh, where the domestic CIF normal value (US$/t 3.14) was compared to the domestic industry price on the ex-factory condition, resulting in a relative difference of 7%. The same conclusion was reached that there were indications showing the likelihood of resumption of the dumping by the Bangladeshi producers/exporters if the anti-dumping duty were not extended.

A public interest procedure will be optional, upon request submitted based on a duly completed Public Interest Questionnaire or ex officio at the discretion of SDCOM (Subsecretariat of Trade Defence and Public Interest). The public interest procedure aims to identify possible impacts of the imposition of the anti-dumping measure on economic agents, which could be potentially more harmful when compared to the positive effects of the application of the trade defense measure. It has the same deadlines as the anti-dumping sunset review.

The parties interested (Exporters, Importers, other Domestic Producers) can cooperate with the investigation by submitting their response to the Questionnaire, ensuring that the final decision is based on precise data, and also benefitting from an individual dumping margin (which tends to be lower than the margin calculated based on the facts available).

Vera Kanas
Partner - São Paulo
vkanas@tozzinifreire.com.br

 

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