20% Anti-Circumvention (CVD) Duty on Saccharin from Thailand Notified

The current Notification No. 4/2022-Customs (CVD) dated 21 October 2022 supersedes Notification No. 3/2022-Customs (CVD), dated the 2nd June, 2022.

[Notification No. 4/2022-Customs (CVD) dated 21 October 2022]

Seeks to levy countervailing duty on imports of ‘Saccharine in all its forms’ originating in or exported from Thailand, to prevent the circumvention of countervailing duty levied on ‘Saccharine in all its forms’ originating in or exported from China PR vide notification No. 2/2019-Customs (CVD) dated 30^th August, 2019.

G.S.R. (E).- Whereas, in the matter of ‘Saccharin in all its forms’ falling under tariff item 2925 11 00 of the First Schedule to the Customs Tariff Act, 1975 (51 of 1975) (hereinafter referred to as the Customs Tariff Act), originating in or exported from China PR and imported into India, the designated authority in its final findings, published in the Gazette of India, Extraordinary, Part I, Section 1, vide notification No.6/18/2018-DGAD, dated the 19th June, 2019, had come to the conclusion that the Saccharin exported to India from China PR at subsidised value, thus, resulting in material injury to the domestic industry;

And, whereas, on the basis of the aforesaid findings of the designated authority, the Central Government had imposed a countervailing duty on the Saccharin, vide notification of the Government of India, Ministry of Finance (Department of Revenue), No. 2/2019-Customs (CVD), dated the 30th August, 2019, published, vide number G.S.R. 610(E), in the Gazette of India, Extraordinary, Part II, Section 3, Sub-section (i), dated the 30th August, 2019;

And, whereas, the designated authority, vide its initiation notification No. 07/05/2022-DGTR, dated the 17th March, 2022, published in the Gazette of India, Extraordinary, Part I, Section 1, dated the 17th March, 2022, had initiated an investigation in the matter of circumvention of the aforesaid countervailing duty and consequent need to extend such a countervailing duty on imports of ‘Saccharin in all its forms’ (hereinafter referred to as the ‘subject goods’) falling under tariff item 2925 11 00 of the First Schedule to the Customs Tariff Act, originating in, or exported from Thailand (hereinafter referred to as the ‘subject country’) into India;

And, whereas, the designated authority in its final findings, published in the Gazette of India, Extraordinary, Part I, Section 1, vide notification No. 07/05/2022-DGTR, dated the 26th July, 2022, has come to the conclusion that-

(i) there has been a change in pattern of trade in case of subject goods from the subject country;

(ii) imports of subject goods from the subject country are entering at dumped prices;

(iii) the import of subject goods from the subject country has undermined the remedial effect of existing countervailing duty measure on the imports of the subject goods originating in or exported from China PR.

and has recommended imposition of the existing countervailing duty imposed on the imports of ‘Saccharin in all its forms’, originating in or exported from China PR, vide notification of the Government of India, Ministry of Finance (Department of Revenue), No. 2/2019-Customs (CVD), dated the 30th August, 2019, published, vide, number G.S.R. 610(E), in the Gazette of India, Extraordinary, Part II, Section 3, Sub-section (i), dated the 30th August, 2019, on the subject goods, originating in or exported from the subject country.

Now, therefore, in exercise of the powers conferred by sub-sections (1), (1A) and (6) of section 9 of the Customs Tariff Act read with rules 20, 22, 25, 26 and 27 of the Customs Tariff (Identification, Assessment and Collection of Countervailing Duty on Subsidized Articles and for Determination of Injury) Rules, 1995, and in supersession of the notification of the Government of India, Ministry of Finance (Department of Revenue), No. 3/2022-Customs (CVD), dated the 2nd June, 2022, published in the Gazette of India, Extraordinary, Part II, Section 3, Sub-section (i), vide number G.S.R. 414 (E) dated the 2nd June, 2022, except as respects things done or omitted to be done before such supersession, the Central Government, after considering the aforesaid final findings of the designated authority, hereby imposes on the subject goods, the description of which is specified in column (3) of the Table below, falling under tariff item of the First Schedule to the Customs Tariff Act, specified in the corresponding entry in column (2), originating in or exported from the countries specified in the corresponding entry in column (4), produced by the producers specified in the corresponding entry in column (5) and imported into India, a countervailing duty of an amount as specified in the corresponding entry in column (6) of the said Table, namely:-

Table
S. No.	Tariff item	Description of goods	Country of Origin/Export	Producer	Duty amount as % of CIF value
(1)	(2)	(3)	(4)	(5)	(6)
1.	2925 11 00	Saccharin in all its forms	Thailand	Any	20

2. The countervailing duty imposed under this notification shall be effective from the date of initiation of the anti-circumvention investigation by the designated authority, vide its initiation notification No. 07/05/2022- DGTR, dated the 17th March, 2022, published in the Gazette of India, Extraordinary, Part I, Section 1, dated the 17th March, 2022, and will be co-terminus with the countervailing duty on ‘Saccharin in all its forms’ as levied vide notification No. 2/2019-Customs (CVD), dated the 30th August, 2019, published vide number G.S.R. 610(E), dated the 30th August, 2019 (unless revoked, superseded or amended earlier), and the countervailing duty shall be paid in Indian currency.

Explanation.- For the purposes of this notification, rate of exchange applicable for the purposes of calculation of such countervailing duty shall be the rate which is specified in the notification of the Government of India, in the Ministry of Finance (Department of Revenue), issued from time to time, in exercise of the powers conferred by section 14 of the Customs Act, 1962 (52 of 1962), and the relevant date for the determination of the rate of exchange shall be the date of presentation of the bill of entry under section 46 of the said Customs Act.

[F. No. CBIC-190354/112/2022-TRU]