Anti Dumping - Resurrected Notifications - No duty before resurrection
IT'S a great Day for DDT. For the last six years, DDT has been relentlessly pointing out the fact that the Government had been with routine regularity extending the validity of dead anti dumping notifications and we had been questioning as to what would be the position during the period between lapsing of an anti dumping notification and its resurrection. We have been told by several Customs officers that despite lapsing of the notifications, they would collect the anti dumping duty, on the assumption that Government would resurrect them and at that point of time, it would be impossible to collect the differential duty. DDT is extremely happy to report that Board has reacted favourably.
The latest Board Circular states that on a plain reading of Section 9A (5) of the Customs Act, 1975, 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, the anti dumping levy notified in pursuance of final findings of the Director General (AD) is effective from the date of imposition of provisional duty and therefore the period of five years is to be computed from such date.
Collection beyond that period is permissible only when the said levy is extended by a notification either for further period of five years (in pursuance of the final findings of the Designated Authority in a Sun Set Review) or for one year (during the pendency of Sun Set Review).
Thus, a definitive/final anti-dumping duty can be collected beyond the stipulated period only when a notification extending the levy has been issued, before the expiry of the parent notification.
Unless such revalidation or extension is carried out by a fresh notification, the collection of final anti-dumping duty should cease on the completion of five years.
Where the findings in a review are notified after the lapse of the parent notification, the notification in such cases would be effective prospectively from the date of issue of such notification.
Board deserves all praise for this very logical and reasonable clarification. So, now for the failure of the Board, the importer will not be punished.
CBEC Circular No. 28/2011-Cus, Dated: July 8, 2011