India's CVD probe into BD jute product imports faces setback

India's investigation into imposing a countervailing duty (CVD) on Bangladeshi jute product imports has hit a procedural snag, with Bangladesh seeking an extra 30 days to submit its questionnaire responses, sources said.
The commerce ministry has requested the Bangladesh High Commission in New Delhi to take the next course of action regarding the issue.
The move comes amid a tight deadline set by India's Directorate General of Trade Remedies (DGTR) and follows a lack of consultation between the two countries prior to the initiation of the investigation.
The DGTR had, through an email on October 8, set a strict 30-day deadline for the submission of the government questionnaire, exporters' questionnaires, and economic interest questionnaires. Within the same period, exporters must also submit their questionnaires and economic interest information.
Considering the overall situation -- including time constraints and the complexity of collecting the necessary information to prepare responses -- the commerce ministry believes it is appropriate to request an extension for the submission of questionnaire responses, according to a letter sent to the New Delhi High Commission.
This deadline, which expired on November 7, proved insufficient for Bangladesh's commerce ministry and the exporters concerned. The DGTR initially fixed September 1 for a consultation, but the relevant email was communicated late, reaching the Bangladesh commission on September 25, well after the proposed meeting date.
In response to the missed date, Bangladesh formally sought a 60-day extension for the consultation. The DGTR, however, proceeded to issue the Notice of Initiation of Investigation on September 29 without responding to the commerce ministry's request.
To address this, Bangladesh has sent a follow-up letter to New Delhi, requesting a formal consultation to be organised in the third week of November 2025 -- an unprecedented move to retroactively comply with the pre-initiation requirement.
The DGTR's investigation for a new CVD adds another significant trade barrier to Bangladesh's vital jute sector. India already maintains strict Anti-Dumping Duties (ADD) on jute products from Bangladesh, confirmed by an extended levy set in December 2022 and further reviewed in mid-2025.
Jute goods exported from Bangladesh have faced significant anti-dumping duties since 2017. In March 2018, the Indian authority concerned initiated an anti-circumvention investigation into the import of jute sacking cloth from Bangladesh. The Indian finance ministry enhanced duty on Bangladesh's sacking bags in June 2019.
The DGTR conducted a sunset-review investigation and recommended the extension of ADD on jute goods imported from Bangladesh on behalf of Indian traders in September 2021. The Indian finance ministry extended the duty on December 30, 2022.
Since January 5, 2017, the Indian finance ministry has imposed anti-dumping duties for five years on jute products from Bangladesh, at rates ranging from $6.03 to $351.72 per tonne, amid allegations of dumping goods such as jute yarn, twine, sacking bags, and hessian fabrics.
The tariff barrier in the form of anti-dumping duties continues following the Sunset Review conducted in 2022.

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