Collection of anti-dumping duty beyond the validity period.

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Circular No. 05/2015-Customs F.No. 354/104/2014-TRU Government of India Ministry of Finance Department of Revenue Tax Research Unit New Delhi, the 28th January, 2015 Subject: Collection of anti-dumping duty beyond the validity period – Regarding. I am directed to refer to the Board’s Circular No. 28/2011-Customs, dated 8th July 2011 on the above subject and to state as under. 2. Circular No. 28/2011-Customs, dated 8th July 2011 was issued in the context of a representation received in March, 2011 that anti-dumping duty was being demanded and levied under notification No. 100/2005- Customs dated 29th November, 2005 by various Customs authorities on Acrylonitrile Butadiene at the time of its clearance, despite the fact that Directorate General of Anti-Dumping and Allied Duties (DGAD) had not initiated sunset review in the matter of levy of anti-dumping duty on Acrylonitrile Butadiene, before the expiry of the said notification on 8th June, 2010. It was also represented that in the absence of any initiation of a sunset review, the anti-dumping duty lapses at the expiry of 5 years from the date of its initial imposition. 3. Since in the said case, the DGAD had not initiated any sunset review, the levy under notification (No. 100/2005-Customs) could not have been extended (for one year) in terms of the 2nd Proviso to Section 9A (5) of the Customs Tariff Act, which reads as under: “Provided further that where a review initiated before the expiry of the aforesaid period of five years has not come to conclusion before such expiry, the anti-dumping duty may continue to remain in force pending the outcome of such a review for a further period not exceeding one year. 4. However, reportedly field formations were still collecting anti- dumping duty. It was in this context that the Circular No.28/2011- Customs dated 8th July 2011 was issued so as to clarify that in such cases, definitive/final anti-dumping duty can be collected only for a period of five years from the date of its imposition. 5. In view of the above, Para 3 of the Circular No.28/2011- Customs dated 8th July 2011 is substituted as under: “3. From a plain reading of this provision it is evident that definitive/final anti-dumping duty can be collected only for a period of five years from the date of its imposition. Generally by virtue of sub-section (2) of section 9A of the Customs tariff Act, 1975, the anti-dumping duty levied in pursuance of final findings of the Directorate General of Anti-Dumping and Allied Duties (DGAD) is effective for a period of five years from the date of imposition of provisional duty except in cases where the DGAD initiates a review before expiry of such five year period. In cases where the DGAD has not initiated any sunset review before the expiry of aforesaid five years, no anti-dumping duty can be collected beyond the period of five years from the date of its imposition.”. (Malay Samir) Technical Officer (TRU)

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