Mon, Mar 23, 2015 - Page 14 News List

MOEA hails Indian court ruling on USB sales

Staff writer, with CNA

The Ministry of Economic Affairs (MOEA) has hailed a ruling from the Delhi High Court in favor of Taiwan’s USB flash drive exporters.

The ministry said that the decision, which was issued last week, effectively reversed a recommendation by the Indian Designated Authority (DA), working under the Indian Directorate-General of Anti-dumping and Allied Duties at the Indian Ministry of Commerce and Industry, to tax USB flash drive makers from Taiwan and China amid ongoing anti-dumping efforts.

In the wake of the favorable court ruling, the MOEA said it would continue to help local exporters deal with tariff barriers or financial punishments through additional tariff charges, at a time when Taiwanese exporters are looking to claim a larger share of the global market.

The DA launched an investigation into USB flash drive imports from several nations, including Taiwan and China, in June 2013, amid concerns that these countries were selling their products at unfairly low prices in the Indian market.

In a document issued in December last year, the DA concluded that USB flash drives from Taiwan and China had been sold in India below their normal value, causing material damage in the Indian market. It recommended the imposition of a definitive anti-dumping duty equal to the lesser margin of dumping and the margin of injury, which was deemed to equal US$3.06 per unit exported from Taiwan and US$3.12 per unit exported from China.

After the DA recommendation was made public, the MOEA invited local USB flash drive exporters, related industrial associations and government agencies to map out a strategy to tackle the possible imposition of anti-dumping tariffs.

The MOEA said that once such anti-dumping tariffs were imposed on Taiwan’s exports, local USB flash drive firms would lose their competitive edge against rivals in the Indian market, adding that it had written to the Indian Ministry of Commerce and Industry saying that the DA’s investigation had failed to follow procedural justice, while consulting with lawyers in the US, India and the WTO to pin down any argument in favor of Taiwan’s exporters.

According to statistics compiled by the Indian trade authorities, Taiwan sold about US$110 million worth of USB flash drives last year, accounting for 32.3 percent of India’s total USB flash drive imports.

The MOEA said that if India still imposes anti-dumping tariffs on Taiwan’s USB flash drive exporters, it would probably seek relief under the WTO’s trade dispute resolution mechanism.

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