India is going to impose anti-dumping duty on Bangladeshi fishing nets.
It came to light as the Directorate General of Anti-Dumping Duty and Allied Duties (DGAD) under the Indian commerce ministry in its final finding unveiled last week recommended $2.69 anti-dumping duty per kg fishing net produced or exported from Bangladesh.
The DGAD also recommended anti-dumping duty on Chinese fishing nets but that is with a lesser rate: Chinese fishing nets will face anti-dumping duty of $2.19 per kg. Only one Chinese company has to pay $1.51 for per kg fishing net while exporting to India.
After jute and jute goods and Hydrogen Peroxide, it is the third anti-dumping duty on Bangladesh imposed by India.
According to the World Trade Organisation (WTO), if a company exports a product at a price lower than that the price it normally charges on its home market, it is said to be ‘dumping’ the product. In other words, it is a situation of international price discrimination, where the price of a product when sold in the importing country is less than the price of that product in the market of the exporting country.
Last year, Indian Fishnet Manufacturers Association filed an application before the DGDA for initiation of anti-dumping investigations concerning imports of fishing net from Bangladesh and China.
Following the application, Indian authority initiated the investigation in March last year.
Bangladeshi exporters argued that the manufacturing of monofilament synthetic nylon fibre is banned in Bangladesh, and so they neither manufacture nor export fishing nets made of monofilament.
They also argued that the manufacturing, marketing, storing of fishing nets (monofilament) is an offence in Bangladesh and they manufacture and export only agricultural nets to India.
Stressing on this point, Bangladeshi exporters said the petition is liable to be dismissed on this ground.
The DGAD, however, claimed that none of the exporters/producers in Bangladesh have co-operated with the authority in the investigation.
“In view of non-cooperation by the exporters/producers in Bangladesh, the Authority has constructed the Normal value considering the best available information on record,” said the finding report.
It also said: “None of the exporters from Bangladesh have provided any information giving details of export price.”
Therefore, the Indian authority has determined the export prices for producers/exporters of Bangladesh on the basis of the DGCI&S transaction-wise data.
The export of fishing nets from Bangladesh is tiny. It was worth US$ 1.11 million in the past fiscal year. The total earnings came from India. So, despite the anti-dumping duty, the exporters will continue their fishing net export in the neighbouring country in the near future.
India’s finance ministry will finally issue the order of imposing and effecting the anti-dumping duty.
