Context:
News Source: Live Mint
- The Prime Minister’s Office (PMO) has initiated discussions on the potential imposition of countervailing duty (CVD) on stainless steel.
- Countervailing duty (CVD): These are tariffs levied on imported goods to offset subsidies made to producers of these goods in the exporting country.
- CVDs are meant to level the playing field between domestic producers of a product and foreign producers of the same product who can afford to sell it at a lower price because of the subsidy they receive from their government.
- Provision in WTO: The World Trade Organization (WTO) permits the imposition of countervailing duty by its member countries.
- Supplementary duty: CVD is imposed as an additional duty besides customs on imported products when such products are given tax concession in the country of their origin.
- Recommendation: Countervailing measures in India are administered by the Directorate General of Trade Remedies (DGTR), in the Department of Commerce, Ministry of Commerce and Industry.
Directorate General of Trade Remedies (DGTR):
|
- Imposition: The department of commerce suggests anti-dumping duties. However, it is the department of revenue in the finance ministry that acts on the suggestion within three months and puts the duties in place.
Additional Information:
Anti-dumping duty:
|
Post Views: 277