Dhaka has decided to formally request Delhi to review the anti-dumping duty it imposed on the import of Bangladeshi jute goods, sources said.
To this end, Bangladesh Tariff Commission (BTC) asked 26 private jute goods exporters affected by the anti-dumping duty to submit supportive information and data by January 4.
The BTC sought the information as per requirement of the Directorate General of Anti-Dumping and Allied Duties (DGAD) of India.
"We have requested the jute millers to provide necessary supportive documents required to file a review application to the Indian authorities," said Rama Dewan, joint chief of the BTC.
On January 5 last, the finance ministry of India slapped the anti-dumping duty ranging from US $19 to $351.72 per tonne on the import of jute goods for five years.
The tariff was imposed after an investigation by India's DGAD into the allegation of dumping of the products by Bangladeshi exporters, officials said.
If a country exports a product at a price that is lower than the price it normally charges in its local market, or sells at a price that does not meet its full cost of production, it is said to be "dumping" the product.
If the review appeal is accepted, the DGAD will conduct a complete investigation again to make further decision, the officials added.
"Without supportive information, it won't be possible to apply for the review of the anti-dumping duty," Rama Dewan said, adding that exporters have to show necessary documents to prove that no such dumping of jute goods is now taking place.
Although BTC has extended the deadline for submitting the documents several times since March 20 this year, most exporters failed to do so.
In its last meeting chaired by BTC Chairman Zahir Uddin Ahmed, the BTC asked the exporters to provide required information by December 15, but to no avail.
The BTC chairman also told the meeting that if exporters can prove that the pricing of exportable jute goods has improved, the review appeal will be justified.
So, the exporters must come forward to cooperate with the commission, he said, adding that the information and data are also needed to assess the impact of the anti-dumping duty on the export of jute goods.
If any uneven competition exists between public and private jute millers in terms of pricing of jute goods, the BTC will request the jute ministry to address it, the meeting was told.
Earlier, five Bangladeshi companies and Indian importers filed an appeal to the Appellate Tribunal, but it dismissed the petition, saying it has no merit.
Usually, two years are needed for a country to be eligible for filing a review appeal, but Bangladesh will get the opportunity after one year considering good relations between the two countries.
Following the imposition of anti-dumping duty, the jute milers saw a decline in export of jute goods.
According to the Bangladesh Jute Spinners Association (BJSA), the shipment of jute yarn dropped to 74,000 tonnes in fiscal year 2016-17 from 100,000 tonnes the previous fiscal year.
Bangladesh Jute Mills Association (BJMA) secretary Abdul Barik Khan said the overall export of jute goods to India has fallen significantly after the imposition of anti-dumping duty.
The filing of a review petition will lead to a positive outcome, he expressed the hope and added that his association has requested the millers to submit necessary information as early as possible.
He also said there is a huge trade gap between Bangladesh and India. So, India can consider withdrawing the anti-dumping duty on Bangladeshi jute goods, he added.
According to the central bank data, Bangladesh's imports from India were valued at $6.16 billion in FY 2016-17, while its exports stood at $672.40 million.
Talking to the FE, Khondaker Golam Moazzem, research director of the Centre for Policy Dialogue (CPD), said the duty imposed by the Indian authorities is very high.
So, it is a good decision to file the review appeal, but it should be filed after proper analysis, he added.
The government should also focus on negotiation with the Indian authorities to address the issue, he suggested.
A total of 170 jute mills are running under BJMA, 94 under Bangladesh Jute Spinners Association (BJSA) and 23 under Bangladesh Jute Mills Corporation (BJMC).
Bangladesh exports 25 to 30 per cent of its exportable jute goods to India, with BJMC having the largest share in the export.
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