Article
EU simplifies CBAM but does not address the underlying issues
By Ankur Sharma, Aayush Rastogi and Nikita Chauhan
The European Council and the European Parliament recently reached a provisional agreement on the Omnibus-I legislative package, which seeks to simplify the European Union’s Carbon Border Adjustment Mechanism (‘CBAM’). Omnibus-I aims to reduce the compliance burden on European importers, particularly small and medium-sized enterprises (SMEs) and simplify CBAM mechanism for them. The article however notes that despite these internal simplifications, significant challenges persist for Indian exporters and other third-country suppliers navigating the EU’s evolving carbon regulation landscape. The authors first discuss Omnibus-I and then highlight certain key issues that need to be addressed before the definitive phase of CBAM begins.
Trade Remedy News
- 4- (Bromomethyl)-2'-cyanobiphenyl from China PR – India initiates anti-dumping investigation
- Acetonitrile from China PR, Russia, Taiwan – India imposes anti-dumping duty
- Aluminium foil upto 80 micron from China PR – India imposes definitive anti-dumping duty
- Carbon and alloy steel threaded rod from India – USA continues anti-dumping and countervailing duties after sunset reviews
- Ceramic tiles from India – USA issues countervailing duty order
- Décor paper from China PR – India revises anti-dumping duty after mid-term review
- Faced glass wool from China PR – India initiates sunset review of anti-dumping duty
- Faced glass wool in rolls from Egypt – India initiates anti-dumping investigation
- Finished carbon steel flanges from India – USA issues determination that countervailing subsidies were provided from 1 January 2022 till 31 December 2022
- Fluoroelastomer from China PR – India initiates sunset review of anti-dumping duty
- Frozen warmwater shrimp from India – USA issues preliminary determination of sales at less than normal value from 1 February 2023 till 31 January 2024
- High chrome cast iron grinding media from India – USA issues anti-dumping and countervailing duty orders
- Insoluble sulphur from China PR and Japan – India imposes anti-dumping duty
- Jute products from Bangladesh and Nepal – India initiates mid-term review of anti-dumping duty
- Linear Alkyl Benzene (LAB) from Iran and Qatar – India imposes anti-dumping duty
- Linear Low-Density Polyethylene from Kuwait, Malaysia, Oman, Qatar, Saudi Arabia and UAE – India initiates anti-dumping investigation
- Methyl acetoacetate from China PR – India initiates sunset review of anti-dumping duty
- Methyl acetoacetate from Switzerland – India initiates anti-dumping investigation
- Optical fibre cables from India – European Union imposes definitive countervailing duty and revises anti-dumping duty
- Organic soybean meal from India – USA issues preliminary determination of provision of countervailing subsidies from 1 January 2023 till 31 December 2023
- Overhead door counterbalance torsion springs from India – USA issues preliminary affirmative determination of sales at less than fair value
- Para nitrotoluene (PNT) from EU – India initiates anti-dumping investigation
- Para-tertiary butyl phenol from China PR and Taiwan – India initiates anti-dumping investigation
- Plastic processing machines from China PR and Taiwan – India imposes anti-dumping duty
- Polyester textured yarn from India – USA continues anti-dumping and countervailing duties after sunset reviews
- Polyester textured yarn from India – USA issues determination of no sales at less than normal value from 1 January 2023 till 31 December 2023
- Potassium tertiary butoxide from China PR and USA – India imposes anti-dumping duty
- Pretilachlor in any of its form and its intermediate “2,6-diethyl-n-(2-propoxy ethyl) aniline” from China PR – India imposes anti-dumping duty
- Sodium nitrite from India – USA issues preliminary determination of countervailing subsidies from 21 June 2022 till 31 December 2023
- Sodium tertiary butoxide from China PR – India imposes anti-dumping duty
- Stainless steel flanges from India – USA issues final affirmative anti-dumping administrative review for period 1 October 2022 till 30 September 2023
- Stainless-steel seamless tubes & pipes from China PR – India initiates mid-term review of anti-dumping duty
- Textured tempered glass whether coated or uncoated from Malaysia – India initiates countervailing duty investigations
- Thermoplastic polyurethane (TPU)–based Surface/Paint Protection Film from China PR – India initiates anti-dumping investigation
- Virgin Multi-layer Paperboard from Indonesia – India initiates anti-dumping investigation
- Vitamin-A palmitate from China PR, European Union and Switzerland – India imposes anti-dumping duty
WTO News
- Two DSB Panels established to resolve trade disputes between Canada and China
India Customs and Trade Policy Update
- Adherence of Indian Standards even for input material for steel and steel products covered under Steel and Steel Products (Quality Control) Order, 2024
- QCO exemption for imports subject to mandatory QCOs by Ministry of Textiles – EO period revised for imports under Advance Authorisation
- Colloidal precious metals, and compounds and amalgams of precious metals – Imports restricted
- Palladium, Rhodium and Iridium alloys consisting of gold more than 1% by weight – Imports restricted
- Alcoholic beverages bottled in origin and in bulk – NOC under FSS (Import) Regulations to have validity of 1 year
- Soda Ash – Minimum Import Price condition extended till 31 December 2025
- Low ash metallurgical coke – Country-wise quantitative restrictions extended till 31 December 2025
- Bangladesh – Import of certain goods of Chapter 53 allowed only through Nhava Sheva seaport
India FTA Update
- India-European Union FTA is expected soon
- India-Oman FTA – Good news expected soon
- India and Kyrgyz Republic sign Protocol and exchange Instrument of Ratification of Bilateral Investment Treaty
- India-New Zealand FTA: Govt consulting industry on duty cuts
- India-ASEAN FTA – India seeks fairer terms
- India and Canada to resume FTA talks after 21 months pause
Ratio decidendi
- Anti-dumping duty – Notification to continue ADD beyond initial period of 5 years can be issued after the expiry of original notification, provided sunset review is initiated before such expiry – Madras High Court
- ASEAN-India FTA – Article 24 of AIFTA, providing for specialized disputes resolution mechanism, is not enforceable, as has not been incorporated in domestic statute – Bombay High Court
- Blower, Filter, Water Valve Assembly, Control Panel, Module JCBHP and Thermostat are not classifiable as parts of air-conditioner – Note 2(a) and not Note 2(b) to Section XVI is applicable – CESTAT New Delhi
- FTA imports – Packing material is not the foolproof criteria to decide ‘country of origin’ – CESTAT Mumbai
- SAFTA imports – Non indication of value addition figures in Country-of-Origin certificates is not fatal – CESTAT Kolkata
- Target Plus scheme – Import of plastic granules by exporter of rice – Broad nexus – CESTAT Chennai