Easing the Anti-Dumping and Countervailing Duty Investigations Filing Process for MSMEs in India

Clinic: CTIL, Gujarat Maritime University, Spring 2022

Beneficiary: Laghu Udyog Bharati

Executive Summary

Read the full report here

Antidumping (AD) and Countervailing (CV) actions have become the preferred means of imposing restrictions on international trade routes. Although these trade defence measures are established for replacing existing limitations and overcoming economic distraught of organisations, especially MSMEs of the importing country as cheap imports hamper the business. Thus, to prevent loss in business, it is important to simplify the AD/CV procedure so that these organisations can avail the benefits of trade remedial measures. The report attempts to identify the barriers faced by MSMEs especially regarding AD/CV and how to address these concerns.

The report states that there is a need for a renewed dialogue for establishing efforts and promoting the development of MSMEs and giving them the required relief. Some of the primary concerns that MSMEs face from complex AD/CV investigations, includes administrative procedures, investigation costs, and prevailing uncertainties. This report analyses several factors relating to the present regulations and the insufficient protection provided to MSMEs dealing with the influx of trade.

The report further focuses on a deeper analysis of the procedural issues that occur during the investigation phases which place an administrative burden on MSMEs. The report has analysed AD/CV investigations which are currently imbalanced through various reasons including the concerns of rising prices following an investigation. The fears of investigation can hurt the existence of MSMEs in the domestic markets. In addition to this, the report has identified that the present state of AD/CV investigation in India goes beyond the procedural issues, it also includes a regulatory gap between the DGTR and the implementation of laws coupled with the classification of goods and technological barriers that nullify the efforts of protecting MSMEs from unfair trade practices.

To address this gap, the report attempts to suggest reform regarding the AD/CV procedure in India, by considering the practices followed across several countries to tackle informality in providing support to MSMEs. The report has identified several recommendations to provide a comprehensive policy and actionable approach for strengthening procedural law enforcement, administrative enforcement, and improving general business practices by removing the ambiguity for MSMEs in terms of utilising the AD/CV regulatory framework.

This report provides the basis for beneficiary in ways that may assist them in easier and cost-effective filing of AD/CV applications and participation in AD/CV investigations, as well as MSME industries in India.

Read the full report here.