Anti-dumping law draft ready
Kathmandu, June 14:
In a bid to protect to the domestic industries from cheap imports, the government has prepared a draft of the anti-dumping law.
The ministry of industry, commerce and supplies (MoICS) has finalised the draft bill of the ‘Anti-dumping and Countervailing Duty Act’, as per Nepal’s commitment to the World Trade Organisation (WTO) to promote fair trade practices and protect the domestic industries. The new legislation aims to substitute imports and protect the domestic industry against the cheap imports and the dumping of the products.
The proposed legislation is aimed at disciplining the anti-dumping actions, which the domestic industries and manufacturers have been complaining that cheap imports have eroded the competitiveness, said an official at MoICS. In an absence of legal framework to protect the domestic manufacturers and discourage anti-dumping practices, the industrialisation process is said to be in dilemma.
“The import is expected to be substituted,” the official said, adding that the domestic products would get market and competitive prices. The anti-dumping law is expected to help the shoe and readymade garment industries, in particular, in the pretext of cheap imports from China and India.
Although the country’s production alone cannot meet the domestic demands in shoes and garments, the law will at least boost the competitive strength in terms of price and cost of production. The competitive strength of the Nepali industries is not as strong as compared to its neighbours mainly because of its dependency on import of raw materials.
The draft bill of the law proposes to impose duty on imports of those goods, which could hurt the domestic production, while for the dumped goods, the government plans to protect the domestic industries through legal provisions. It also proposes to set up of an institutional mechanism to be headed by an anti-dumping investigation officer, who will be responsible for investigating the cases and levy anti-dumping duties. The anti-dumping duty will differ from one product to another depending upon its impact on the domestic production and manufacturing.
The ministry has already consulted with the concerned stakeholders, while drafting the law and now it will be forwarded to the ministries of finance and law for their approval. Then it will be sent to the cabinet and then to the parliament.