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Surge in footwear imports from China

Updated: Aug 26, 2013 04:28:31pm
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New Delhi, Aug 26 (KNN)  Import of footwear products from China have gone up by about USD 100 million in two years from 2010-11 to 2012-13, affecting domestic manufacturers who are in the small scale sector to a large extent.
 
While footwear imports in 2010-11 amounted to USD 119.20 million, in 2011-12 they rose to USD 180.31 million and in 2012-13 to USD 211.15 million, according to data given in parliament today.
 
The industry, especially in the MSME sector has been raising this concern of surging imports from China.
 
Major imports from China include electronic goods, machinery, organic chemicals, project goods, fertilizers, iron and steel, transport equipment, electric machinery (except electronics) and manufactures of metals.
 
According to Minister of State for Commerce and Industry D Purandeswari, all imported goods in India are subject to domestic laws, rules, orders, regulations, technical specifications, environment and safety norms. These regulations are notified from time to time. The Government takes appropriate action in case of goods imported from any source is found to violate these regulations and threaten human, animal or plant life or health.
 
Due to concerns regarding melamine contamination in milk and milk products from China, on the recommendation from Food Safety and Standard Authority of India, the Government has prohibited import of milk and milk products including chocolate and chocolate products and candies/confectionery/food preparations with milk or milk solids as ingredient, from China with effect from 24.9.2008 till 23.6.2014.
 
Further, import of toys is subject to meeting of the specified technical and safety standards since 27.1.2010. Import of mobile handsets without International Mobile Equipment Identity (IMEI) or with all zeroes IMEI and import of CDMA mobile phones without Electronic Serial Number (ESN)/Mobile Equipment Identifier (MEID) or all zeroes ESN/MEID, has been prohibited since 16.6.2009. These standards apply to import of such goods from China as well.
 
The Directorate General (Safeguards) can temporarily restrict import of products by imposition of additional duty or quantitative restrictions (QRs) if Indian industry is ‘seriously injured or threatened with injury’ caused by ‘surge’ in imports. This is an action in accordance with the WTO Agreements on safeguards.  Again, this applies to import from China also.
 
The Government has also been imposing anti-dumping duties for restricting imports when such imports have been established as unfairly affecting the markets for goods produced by Indian industries. The Directorate General of Anti-Dumping and Allied Duties (DGAD) has initiated anti-dumping investigations into 291 cases as on date involving various countries since 1992.  Out of these, 159 cases involve imports from China. The major products found to have been dumped from China in all these years and in respect of which anti-dumping duty has been imposed, fall in the product group of Chemicals and Petrochemicals, Pharmaceuticals, Products of Steel and other metals, Fibres and Yarns and Consumer Goods. The anti-dumping investigation by India is always initiated in accordance with the principles and procedures laid down in our national law, which is in consonance with the WTO’s Agreement on Anti-Dumping. 
 
The Government has been implementing various schemes/programmes to increase the competitiveness of small scale industries (SSIs) to effectively compete with imports from China and other countries. Some of these schemes/programmes include National Manufacturing Competitiveness Programme (NMCP), Credit Guarantee Scheme, Credit Linked Capital Subsidy Scheme, Cluster Development Programme, Market Development Assistance Scheme and Vendor Development Programme for Ancillarisation.
 
The proposal of mandatory sourcing of equipment from domestic manufacturers is likely to violate the provisions given under the WTO Agreement on Trade Related Investment Measures (TRIMs).  (KNN)
 

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