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Anti-dumping duty on Bangladeshi batteries

Dhaka files complaint against Delhi

STAR BUSINESS REPORT
Bangladesh has filed a complaint with the dispute settlement body of the WTO over duties imposed by India on import of lead acid batteries.
The complainant asks for consultations with India, which imposed anti-dumping duty on battery import on January 1, 2002.
A request for consultations is the first step to set up a formal WTO (World Trade Organisation) panel to make a binding ruling on the legality of a country's actions.
Dhaka has set out 17 reasons in favour of its claims that measures taken by India are illegal under WTO rules. The world trade body has published the complaint on its website recently.
Bangladesh is the first least developed country to bring a dispute with the WTO. 29 of the world's 48 poorest countries are members of the world trade body. More than 300 disputes have been registered with the WTO since it was founded in 1995.
The communication from the
delegation of Bangladesh to the delegation of India and to the chairman of the dispute settlement body had been circulated on February 2 among the WTO members.
The Indian authorities imposed anti-dumping duties based on fabricated figures and information on exports during January to September in 2000.
According to Indian authorities, Bangladesh exported 275,480 pieces of batteries worth $610,228 during the period. But according to the Export Promotion Bureau, the figure was 37,3999 units worth $728,325.
The Indian authority alleged Bangladeshi battery exporters had not co-operated with the antidumping investigation requirements. But Bangladeshi exporters outright rejected the allegations. Besides, the grounds of non-cooperation charge were not covered under the anti-dumping investigation rules.
Bangladeshi battery used to enjoy preferential tariff facility under the South Asian Preferential Trading Agreement (Sapta).
The duty imposition saw an end to battery export to the next door neighbour as Indian importers have to pay as high as 131 per cent duty on the item from Bangladesh.
Generally, battery import duty in India is 64.21 per cent, but under the preferential arrangement, the importers were paying 38.33 per cent duty.
Two Indian companies filed a petition demanding initiation of an anti-dumping investigation, and imposition of anti-dumping duty on battery exports to India from Bangladesh. Exide Industries and Amara Raja Batteries Limited filed the petition, saying huge numbers of lead acid batteries are making their way into India from Bangladesh, Japan, Korea and China due to easing of import restrictions, and bringing import of lead acid batteries under open general licenses.
"The government took the decision much earlier but the mission in Geneva delayed the process for more than a year," said an official of Rahimafrooz, the country's largest battery manufacturer.