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Business Standard
12 hours ago
- Business
- Business Standard
India imposes anti-dumping duty on plastic machines from China, Taiwan
The Central Government on Friday announced anti-dumping duties on plastic processing machinery imported from China and Taiwan, ranging between 27 to 63 per cent. The move aims to safeguard the domestic manufacturing sector from unfair trade practices. The decision follows a detailed investigation by the Directorate General of Trade Remedies (DGTR), which concluded that plastic processing machines from these two regions were being dumped in the Indian market, meaning they were sold at prices significantly lower than their normal value in the exporting countries. This practice was found to be causing 'material injury to the domestic industry'. The affected machinery falls under tariff codes 8477 10 00 and 8477 90 00 of the Customs Tariff Act, 1975, which typically cover injection moulding machines and other equipment used in the production of plastic goods. The DGTR's final findings, issued on March 27, 2025, establish these three conclusions: Machinery from China and Taiwan had been exported at unfairly low (dumped) prices. The domestic plastic machinery industry suffered significant damage as a result. The injury was directly caused by these dumped imports. Following these findings, the Department of Revenue issued a notification, dated June 26, enforcing the recommended duties. These duties are calculated as a percentage of the CIF (Cost, Insurance, and Freight) value of the imported goods—a method that includes the cost of the goods, shipping, and insurance. New duty rates are as follows:
Mint
18-06-2025
- Business
- Mint
Mint Impact: India plugs the loophole that allowed gold importers to evade duty
India has placed gold compounds and 12 other items in the restricted trade category to curb evasion of import duty. The Directorate General of Foreign Trade (DGFT) has amended its import policy, moving gold compound (HS code 28433000) from 'free' to 'restricted' list, according to a notification on 18 June. Which means, importers will now need a licence from the DGFT to bring such compounds into the country. Also Read | Gold is nearing ₹1 lakh, but experts believe there's still room to grow Mint reported on 12 June how importers were using a loophole to bring in gold compounds–also called liquid gold–instead of actual gold and saving up on the 6% duty. Gold compounds, used in industrial applications, attract no duty if imported from the UAE, Japan and Australia, which have trade pacts with India. Imports of such compounds soared 9.25 times over a year earlier and 2.84 times quarter-on-quarter to 69,879kg in the January-March period, showed data from the Directorate General of Commercial Intelligence and Statistics (DCGIS). That's equivalent to $1.29 billion worth of gold imports. By comparison, actual gold shipments fell 51.2% sequentially and 0.9% over a year earlier to $9.5 billion in Q4 FY25. Also Read | Gold is back under pressure after a stunning surge. What's driving the dip? The government lost ₹906 crore in customs duty in FY25 because of import of gold compounds instead of actual gold, according to Mint's calculations. According to data from the DGFT, around 87% of the gold compound imports came from the UAE, Japan and Australia. Till now, any individual could import liquid gold without any questions asked on its end use. Also Read | Gold surpasses Euro as second-largest global reserve asset, ECB says In a separate notification, the DGFT put palladium, rhodium and iridium alloy with more than 1% gold under the restricted category. According to the Customs Tariff Act, an alloy with platinum in excess of 2% qualifies as a 'platinum alloy'. But importers were bringing in an alloy with just 2% platinum and 98% gold, and avoiding duty on the yellow metal. Likewise, importers could bring in alloys with traces of palladium, rhodium or iridium, and avoid duty by disclosing them as alloys.
CBC
18-03-2025
- Business
- CBC
What did Canada tariff before the trade war with the U.S.?
Since U.S. President Donald Trump first threatened to place massive tariffs on Canadian goods, the country has been embroiled in a whirlwind back and forth with its biggest trading partner. Against this backdrop, China has slapped new tariffs on certain Canadian goods, and at least one other long-standing trade squabble has been pushed back into the spotlight. Here's a quick look at how tariffs are set under normal circumstances, why some of them (under certain conditions) can skyrocket, and why New Zealand is unhappy. How do Canada's tariffs work? Tariffs are governed by the Customs Tariff Act, which sets a general rate of 35 per cent for goods entering Canada. This may seem high, but this baseline rate is almost never used. This is because Canada, along with more than 160 other countries, is part of the World Trade Organization (WTO), and all WTO members have "Most-Favoured-Nation" (MFN) status when trading with each other. All of Canada's key trading partners are WTO members and they pay lower MFN rates — which vary from product to product. The rate can be even lower if the two countries have their own trade agreement. "Whether it's multilateral or bilateral with other WTO members, you're allowed to reduce that MFN tariff to something lower, either a lower duty tariff or a no duty tariff," said Martha Harrison, an international trade lawyer. For example, the MFN rate for certain railroad axles is 9.5 per cent, but Australia and New Zealand pay just two per cent, because of separate agreements. Under the Canada-United States-Mexico Agreement (CUSMA), 98 per cent of goods entering Canada from the U.S. have no tariffs – or at least, they didn't before the trade war. Many goods can enter Canada tariff-free under MFN status, but Canada places higher default tariffs on some products. Our MFN rate for clothing products averages around 18 per cent, which is partly to help domestic producers compete fairly, but also in the hope of lowering the number of products made under poor labour conditions entering Canadian markets, Harrison says. But when it comes to the dairy industry, tariffs get a little more complicated. What about dairy? Canada uses "supply management" policies for certain agricultural products to control prices, maintain food safety standards and protect the dairy, egg and poultry industries from foreign competition — policies which have long irritated trade partners such as the U.S. and New Zealand, another big dairy producer. The policies aim to limit how much of each product — butter, cheese, ice cream, eggs, etc. — can be imported. Importers apply for a percentage of the quota, and are able to bring in that quantity with no tariffs. WATCH | Why Trump dislikes dairy management: How Canada's dairy supply management system works — and why Trump hates it 2 months ago Duration 8:11 Donald Trump is not a fan of Canada's dairy supply management system — repeatedly attacking it in his first term and going after it again as he prepares to return to the White House. CBC's Ellen Mauro meets concerned Canadian dairy farmers and explains why the system has the U.S. president-elect so riled up. Trump has claimed Canada is "ripping [the U.S.] off" by putting tariffs of over 200 per cent on dairy products. But those tariffs only kick in after the U.S. surpasses the quantity it's permitted to sell in Canada tariff-free – a number negotiated by the Trump administration in 2018 as part of CUSMA. "Unless or until you meet that threshold, you do not pay," Harrison said, noting that the U.S. has never reached the quota, which the U.S. dairy industry acknowledged earlier this month. During the negotiation of CUSMA, Canada agreed to increase over time the quota of U.S. products that can enter the market tariff free. New Zealand formally challenged this system in 2022, saying Canada wasn't holding up its commitments under the Comprehensive and Progressive Agreement for Trans-Pacific Partnership (CPTPP). The dispute is ongoing. Why is China upset? In October, Canada put a 25 per cent surtax on steel and aluminum products from China, and 100 per cent on Chinese-made electric vehicles (EVs), claiming unfair competition. Tariffs are often collected in the form of a surtax, which are additional taxes on top of existing rates. China responded with retaliatory tariffs on Canadian agricultural and food products, including canola oil and peas. The U.S. had earlier that year raised tariffs on a range of products from China, including steel and aluminum — an example of how closely aligned Ottawa and Washington's trade goals were just last year. "It's not uncommon for Canada to follow in our key trading partner's footsteps relating to trade policy," Harrison said. "It makes sense from a North American economy perspective." The destabilizing of this historical relationship, enshrined in CUSMA, is "especially troubling," she added.
