India is planning to impose anti-dumping duty on clear floating glass exported by Bangladesh, and to this end, the neighbouring country’s Directorate General of Trade Remedies (DGTR) has already launched an investigation.
Following the probe, India will impose this duty at a fixed rate for a five-year period, said the commerce ministry’s Additional Secretary Md Hafizur Rahman, adding that Bangladesh is taking steps in a bid to prevent this move.
Moreover, India has also launched a “Sunset review” with the goal to extend the timeframe of previously imposed anti-dumping duty on jute products from Bangladesh for five more years.
Hafizur, also the director general of the World Trade Organisation (WTO) Cell operating under the ministry, pointed out that Bangladesh’s exports of clear floating glass had increased significantly in the last fiscal year, reaching around $8 million.
As part of the investigation, India has sent initiation notifications to three Bangladeshi companies – Nasir Glass, PHP Family and Usmania Glass Sheet Factory Ltd, accusing them of reaching up to 145% of dumping margin.
The DGTR has sought explanation from these three companies on the matter through e-mail by next 6 August. However, officials of Usmania Ltd told The Business Standard that they have not exported clear floating glass to India for years.
An anti-dumping duty is a protective tariff that a government imposes on foreign imports that it believes are priced below fair market value.
Responding to a query, PHP Float Glass Industries Ltd’s Managing Director Md Amir Hossain said, “If India imposes the anti-dumping duty, it will be difficult for us to export this product to India.
“They previously imposed this duty on Malaysia and Iran, so exports from these countries to India have now stopped.”
He continued, “Because we are exporting the glass to India, especially to the seven sisters, the people there can buy them at a cheaper rate. If the duty is imposed, our exports will be impacted and our Indian customers will have to buy the product at a higher cost.”
Officials from the commerce ministry and the Bangladesh Trade and Tariff Commission said India is planning to impose anti-dumping duty on clear floating glass exported by Thailand too.
The neighbouring country already imposed this duty on Malaysia, Iran and any other countries that export this particular product there.
Former member of the commission Dr Mostafa Abid Khan said, “As India is imposing anti-dumping duty on all countries that export clear floating glass, it is clear that the neighbouring country is specifically doing this to protect their domestic industry and curb imports.
“They do not want all these countries to export this product at dumping prices.”
When Bangladesh’s export of edible oil began increasing in India around a year ago, India imposed a non-tariff barrier to disrupt the boom. Similarly, their move to impose anti-dumping duty on Bangladesh’s clear floating glass was motivated by last fiscal year’s export volume.
The export volume of this product was minimal in the previous years, so India did not make a move.
On 30 June this year, India informed Bangladesh that a number of Indian glass manufacturers such as Asahi India Glass ltd, Gold Plus Glass Industry ltd, and Sisecam Flat Glass India private Ltd complained to the DGTR accusing Bangladeshi companies of dumping.
The Indian companies also claimed that Bangladesh’s cheaply priced exports are diminishing their production capacity and causing them to suffer losses.
Following these complaints, the DGTR sent a separate letter to the Bangladesh High Commission in New Delhi on 6 July, notifying that they are launching an investigation on the matter, sources have said.
In January 2017, India imposed anti-dumping duty from $19-$352 on per tonne of jute goods exported by Bangladesh. According to existing WTO regulations, such a duty can only be imposed for a period of five years.
So, India has launched a “Sunset review” to extend this period. The country will conclude the review in the next ten months, and then resume this duty on jute exports from Bangladesh for another five years.
Bangladesh had requested India to withdraw the anti-dumping duty on jute products during a commerce secretary level meeting in Dhaka last March, and the country promised to take the matter into consideration.
At a press conference at that time, Commerce Minister Tipu Munshi said Bangladesh would file a case against India at the World Trade Organisation if necessary.
According to the commerce ministry officials, India had given Bangladesh a condition of increasing the price of exported jute products compared to the current markup, and set the increased pricing as the minimum export rate.
However, jute mill owners of Bangladesh did not agree to this condition during a stakeholders’ meeting with the ministry.
