Guwahati: The Action Taken Report on the Recommendations/Observations of the committee’s 171st report on “Issues Affecting the Indian Tea Industry, especially in Darjeeling region” was presented in Parliament on March 23.
According to the report, the Directorate General of Trade Remedies (DGTR) has not yet received any written application from the domestic industry alleging the dumping of tea from Nepal, which could initiate an anti-dumping investigation.
This is despite the fact that the parliamentary committee had expressed concerns in its report on July 21, 2022, that the easy influx of substandard tea from neighbouring countries, particularly Nepal, is jeopardizing the Indian tea industry.
The Directorate General of Trade Remedies (DGTR), an attached office of the Ministry of Commerce, is responsible for administering all trade remedial measures, including anti-dumping and countervailing duties, to ensure a level playing field for the domestic industry against unfair trade practices. Countries like China, European Union, Taiwan, the USA, Singapore, etc., are usually prominent in anti-dumping investigations.
Regarding the investigation on the dumping of teas from Nepal, the DGTR clarified that it can only initiate an anti-dumping investigation under the Customs Tariff Act, 1975, and the Rules made thereunder, upon receiving a written application from the domestic industry alleging dumping of the goods into the country and consequential injury to the domestic industry.
The DGTR may also initiate the investigation suo motu if it receives information from the Commissioner of Customs or any other source regarding dumping and injury.
DGTR clarified that it has not received any written application from the domestic tea industry alleging the dumping of tea from Nepal, and no information has been received from the Commissioner of Customs or any other source.
“However, the domestic industry of tea may submit a written application in DGTR as per the relevant Trades Notices and Rules,” DGTR said. The parliamentary committee had expressed concern over the influx of substandard tea from Nepal and its impact on the Indian tea industry, stating that “imports of inferior quality of teas from Nepal are being sold and re-exported as premium Darjeeling Tea, which not only is diluting the global brand image of India but is also affecting domestic tea prices.”
The parliamentary committee had recommended that strong measures be taken to counter the import of low-quality and cheap tea from neighbouring countries, especially Nepal, which is affecting the domestic tea industry. It also suggested that the DGTR should conduct an investigation and recommend remedial measures, including anti-dumping duty on imported tea.
In its action-taken report, the committee said that the incorporation of stringent requirements for a certificate of origin on tea imports from Nepal will be taken up with the Nepalese side in the next meeting of the review of the India-Nepal Treaty of Trade. It also informed that the Department of Commerce had requested the Food Safety and Standards Authority of India (FSSAI) to allow the import of tea from Nepal from 3 Land Customs Stations (LCS) – Jogbani, Panitanki, and Raxaul.
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It said the Department of Commerce vide letter dated 27.07.2022 has requested FSSAI to allow the import of tea from Nepal from 3 LCS- Jogbani, Panitanki and Raxaul. FSSAI has also conducted joint training of the Tea Board, Custom Officials notified as Authorized Officers at LCS and FSSAI for strengthening of food import clearance of tea from Nepal. The Quality Control Laboratory of the Tea Board is situated at Siliguri, which is near the LCS of Panitanki.
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