Customs Circular No. 25 dated 9^th May 2002

I am directed to invite your attention to the subject mentioned above. As per notification No.100/98-Cus. anti-dumping duty is to be levied on mild steel plates at the rate which is equivalent to the difference of the amount specified in the table (i.e. Rs. 15000/ PMT), and the �landed value� of the goods PMT. The term �landed value� has been defined in the notification as the �assessable value determined under the Customs Act, 1962, and includes all duties of customs except the duties of customs levied under sections 3, 3A, 8B, 9 or 9A, as the case may be, of the Customs Tariff Act�. In this connection, a doubt has been raised whether for the purpose of levy of anti-dumping duty on mild steel plates, the landed value should be arrived at taking the merit rate of duty (at present 30% basic customs duty) on mild steel plates or the actual duty paid under any concessional assessment (e.g. no duty is levied on mild steel plates when imported for use in the manufacture of boats, launches, etc., under notification No. 21/2002-Customs, dated 01.3.2002).

2.      The matter regarding calculation of anti-dumping duty on such goods was one of the subject matters discussed in the Conference of Commissioners on Tariffs and Allied Matters held at Bangalore on 29^th & 30^th June 2000 (Point D-6 of the minutes). The Conference observed that in calculating the amount of anti-dumping duty in such cases, the duty chargeable on dumped goods (i.e. mild steel plates) when used for general purpose should be taken into account, However, as it was not known to the Conference as to what was the basis on which the Designated Authority had worked out the amount of anti-dumping duty leviable, i.e., whether he had taken the general rate of duty or whether various exemptions on such goods had also been taken into account, it was decided that a reference would be made to the Directorate General of Anti-Dumping and Allied Duties (DGAD) in the Department of Commerce. It was also intimated to the Custom Houses vide Board�s letter F.No.528/50/2000-CUS (TU), dated 09.11.2000, that such goods may be assessed provisionally taking into account the concessional rate of duty provided under notification No.16/2000-Cus, but securing the anti-dumping duty by way of 100% bank guarantee.

3.      The DGAD have sine clarified that the concessional duty under various exemption notifications had not been considered while calculating the anti-dumping duty in the context of anti-dumping investigations on mild steel plates imported from Russia, Kazakhstan and Ukraine. In the light of this clarification, I am directed to convey that the provisional assessments may kindly be finalised, keeping in view the facts and merits of individual cases. Difficulties, if any, faced in the implementation of above instructions may be brought to the notice of the Board.

Kindly acknowledge receipt of this circular.