ISLAMABAD: The government of Pakistan through National Tariff Commission (NTC) has provided tools for the protection of its domestic industry from unfair trade practices of dumping, subsidization and sudden surge of imports.

Pakistan has promulgated Anti-Dumping Duties Ordinance 2000, Countervailing Duties Ordinance 2001 and Safeguard Measures Ordinance 2002, in this regard. In the rapidly growing multilateral trade liberalization where tariffs are coming down and the non-tariff barriers are being eliminated, the commission established under National Tariff Commission Act 1990, has been empowered to implement/administer there laws which involve investigations and determinations followed by levying of duties on imports where warranted to counter the unfair trade practices.

Dumping occurs if a company sells a product at a lower price in an export market than its domestic market. Similarly, subsidy refers to a financial contribution given by a government to its industry, which confers additional benefit to the recipient. These investigations, to counter unfair trade, are conducted by the commission according to procedure laid down in the respective laws. A distinguished feature of these investigations is transparency and its rule based system, given the fact the entire record of investigation is available to all interested parties.

Since 2001 the commission has carried out 24 antidumping investigations out of which 19 affirmative final determinations of dumping and injury were made, and appropriate antidumping duties have been imposed in 19 investigations after due process, for a period of five years. Five investigations were terminated without imposing antidumping duty, on the basis of the commission's finding that the domestic industry had not suffered material injury during the period of investigation. Anti-dumping measures imposed by the commission generally led to increase in competitiveness, production, employment and sales of the domestic industry.

The commission's determinations are challengeable, domestically in the appellate tribunal prescribed in Pakistan's antidumping law as well as, internationally, in the WTO Dispute Settlement Body, Geneva. However, so far no case has been challenged in the body. However, under the writ jurisdiction, many importers in an antidumping investigation went to superior courts where due process observed by the commission was upheld.

The commission also renders advice to the government on various trade-related issues, including providing protection and improving the competitiveness of the indigenous industry, promoting exports from Pakistan and on pre-budget and post-budget exercises to rationalize tariff structure.

In order to create awareness of these laws in the business community, the commission in last three years has conducted more than fifty seminars at different forums including chambers of commerce and industry, academic institutions, professional bodies etc.

The Pakistan's domestic industry is being encouraged to make use of the remedies available under these laws if they are facing undue competition due to unfair trade or surge in imports from any country. For the purpose the commission has established a pre-application counseling section for providing assistance to the domestic industry in collecting required evidences and information and filling up of questionnaire/application for initiating action under the relevant laws. The commission also helps domestic industry in handling cases initiated against them by investigating authorities of foreign government under the trade defense laws.

Muhammad Imran Khan

Thursday, May 22, 2008

Source: thepost.com.pk