Full Text
REGD. No. D. L.-33004/99
The Gazette of India
CG-DL-E-01102025-266590
xxxGIDExxx
EXTRAORDINARY
PART I-Section 1
PUBLISHED BY AUTHORITY
No. 286]
NEW DELHI, MONDAY, SEPTEMBER 29, 2025/ASVINA 7, 1947
MINISTRY OF COMMERCE AND INDUSTRY
(Department of Commerce)
(Directorate General of Trade Remedies)
INITIATION NOTIFICATION
New Delhi, the 29th September, 2025
Case No. CVD (OI) – 04/2025
Subject: Initiation of Countervailing Duty investigation concerning imports of "Jute Products" originating in
or exported from Bangladesh and Nepal
F. No. 6/35/2025-DGTR.— 1. Having regards to the Customs Tariff Act, 1975 as amended from
time to time (hereinafter referred as the 'Act') and the Customs Tariff (Identification, Assessment, and
Collection of Countervailing Duty on Subsidized Articles and for Determination of Injury) Rules, 1995
thereof, as amended from time to time (hereinafter referred to as the 'CVD Rules' or 'Rules'), Indian Jute
Mills Association (IJMA) and A.P. Mesta Twine Mills Association (AJMA) (hereinafter collectively referred
to as the 'applicants', 'applicant associations') have filed an application before the Designated Authority
(hereinafter referred to as the 'Authority'), for initiation of a countervailing duty investigation concerning
imports of "Jute Products" (hereinafter referred to as the 'product under consideration' or 'subject goods'),
originating in or exported from Bangladesh and Nepal (hereinafter referred to as the 'subject countries')
2. The applicants have alleged that the producers/exporters of the subject goods in the subject countries have
benefitted from actionable subsidies provided at various levels by the governments of the subject countries,
including the governments of different provinces and municipalities in which producers/exporters are
located, and other 'public bodies'. The applicants have relied upon the relevant laws, rules, and regulations
and other notifications of the relevant government agencies and public bodies as available in the public
domain.
A. BACKGROUND
3. An anti-dumping investigation into imports of "Jute Product" was initiated vide Notification No. 14/19/2015-
DGAD, dated 21st October 2015. Following a detailed investigation, anti-dumping duties were
recommended on 20th October 2016 and were implemented by the Ministry of Finance vide Notification No.
01/2017-Customs (ADD) dated 05th January 2017 and amended further by Customs Notification No.
11/2017-Customs (ADD), dated 3rd April 2017. Subsequently, an anti-circumvention investigation was
initiated vide Notification No. 7/3/2018-DGAD, dated 20th March 2018 concerning imports of 'jute sacking
cloth', (a penultimate stage of "Jute Sacking Bag") from Bangladesh. Final findings in the anti-circumvention
investigation recommended extension of the existing anti-dumping duty imposed on sacking bags vide
Notification No. 7/3/2018- DGAD, dated 19th March 2019, which the Ministry of Finance implemented vide
Custom Notification No. 24/2019- Customs (ADD), dated 18th June 2019.
4. A sunset review investigation was undertaken wherein extension of anti-dumping duty was recommended
vide Notification No. 7/09/2021-DGTR dated 30th September 2022, which was implemented by the Ministry
of Finance vide Notification No 33/2022 Customs (ADD) dated 30th December 2022. A mid-term review
investigation has been initiated in the same investigation against the subject imports from Bangladesh and
Nepal vide Notification No. 7/11/2024-DGTR dated 30th June 2025.
B. PRODUCT UNDER CONSIDERATION
5. The product under consideration is "Jute products" comprising of Jute yarn/twine (single, multiple folded, or
cabled), Jute sacking bags and cloth, and Jute hessian bags and fabrics.
6. It is clarified that the scope of the product under consideration also covers the subject goods when imported
as
* Jute products containing mineral oil or vegetable oil, and
* "diversified jute product" as defined by the Government of Bangladesh under Article 2(9) of the Jute Act
2017, which states that "Diversified jute goods" means the prescribed jute goods, namely: hessian,
sacking, carpet backing cloth, and geo-textiles up to six counts and jute yarn of specified count, excluding
any such goods where the minimum content of jute or jute raw material in the product is less than the
prescribed portion; provided that the Government may, by notification in the official Gazette, increase or
decrease such quantity.
7. The product scope specifically excludes blanket, decorative fabrics, floor coverings, hand & shopping bags,
handicrafts, carpet backing cloth, geo-textiles and other gift novelty items.
8. The product under consideration is classifiable under Chapter 53 and 63 of the Customs Tariff Act, 1975.
The product under consideration is imported under sub-headings 53071010, 53072000, 53101012, 53101013,
and 63051040. The customs classification is indicative only and is not binding on the scope of the product
under consideration. It is clarified that the HS codes are only indicative, and the product description shall
prevail in all circumstances.
9. The applicants have proposed that the PCN methodology adopted in the ongoing mid-term review [No.
7/11/2024-DGTR] may be adopted for the purpose of the present investigation as well.
| Type of Yarn | 1st Digit for type of yarn | Weight of Yarn | 2nd Digit for weight of yarn |
| :----------- | :----------------------- | :---------------------------------- | :--------------------------- |
| | | Upto 14 LBS | A |
| | | More than 14 LBS and upto 20 LBS | B |
| Sacking | 1 | More than 20 LBS and upto 24 LBS | C |
| | | More than 24 LBS and upto 28 LBS | D |
| | | More than 28 LBS | E |
| | | Upto 8 LBS | A |
| | | More than 8 LBS and upto 12 LBS | B |
| Hessian | 2 | More than 12 LBS and upto 16 LBS | C |
| | | More than 16 LBS and upto 20 LBS | D |
| | | More than 20 LBS and upto 24 LBS | E |
| | | More than 24 LBS and upto 28 LBS | F |
| | | Upto 8 LBS | A |
| | | More than 8 LBS and upto 12 LBS | B |
| CB | 3 | More than 12 LBS and upto 16 LBS | C |
| | | More than 16 LBS and upto 20 LBS | D |
| | | More than 20 LBS and upto 24 LBS | E |
| | | More than 24 LBS and upto 28 LBS | F |
| | | Upto 8 LBS | A |
| | | More than 8 LBS and upto 12 LBS | B |
| CRT/CRX | 4 | More than 12 LBS and upto 16 LBS | C |
| | | More than 16 LBS and upto 20 LBS | D |
| | | More than 20 LBS and upto 24 LBS | E |
| | | More than 24 LBS and upto 28 LBS | F |
| | | Upto 8 LBS | A |
| | | More than 8 LBS and upto 12 LBS | B |
| | | More than 12 LBS and upto 16 LBS | C |
| CRM | 5 | More than 16 LBS and upto 20 LBS | D |
| | | More than 20 LBS and upto 24 LBS | E |
| | | More than 24 LBS and upto 28 LBS | F |
C. LIKE ARTICLE
10. The applicants have claimed that the subject goods, which are subsidized and exported to India, are identical
to the goods produced by the domestic industry. There are no differences either in the technical
specifications, quality, functions or end-uses of the product under consideration imported from the subject
countries and the subject goods manufactured by the applicants. The two are technically and commercially
substitutable and hence, should be treated as 'like article' under the Rules. Therefore, for the purpose of the
present investigation, the subject goods produced by the applicants in India are being treated as 'like article'
to the subject goods being imported from the subject countries.
D. SUBJECT COUNTRIES
11. The subject countries in the present investigation are Bangladesh and Nepal.
E. PERIOD OF INVESTIGATION
12. The period of investigation (POI) for the present investigation is from April 2024 to March 2025 (12
months). The injury investigation period covers the period April 2021- March 2022, April 2022 - March
2023, April 2023 - March 2024, and the POI.
F. DOMESTIC INDUSTRY & STANDING
13. The application has been filed by Indian Jute Mills Association (IJMA) and A.P. Mesta Twine Mills
Association (AJMA). M/s. Bowreah Jute Mills Pvt. Ltd., M/s. Caledonian Jute & Industries Ltd., M/s.
Cheviot Company Ltd., M/s. Gloster Ltd., M/s. Hooghly Infrastructure Pvt. Ltd., M/s. Ludlow Jute &
Specialities Ltd., M/s. Naihati Jute Mills, and M/s. Neelam Jute Co. Ltd. (referred to as "Applicant
Companies" herein) have provided the requisite information for the purpose of the present investigation.
14. The Applicant companies have neither imported the subject goods from the subject countries nor are related
to any exporter or producer of subject goods in the subject countries or any importer of the product under
consideration in India. Thus, on the basis of information available and after due examination, the Authority
notes that the applicant companies constitute "a major proportion" of total Indian production. Thus, the
applicant companies constitute domestic industry within the meaning of Rule 2(b) and also satisfy the criteria
of the standing in terms of Rule 6(3) of the Rules and that the application satisfies the criteria of standing.
G. BASIS OF ALLEGED SUBSIDISATION
15. The applicants have alleged that the Government in Bangladesh and the Government in Nepal maintained
various countervailable subsidy programs. The applicants have submitted that there is sufficient evidence
showing that the exporters of the subject goods have received actionable subsidies, as per Article 1 of
Agreement on Subsidies and Countervailing Measures (ASCM), listed below, which provide a benefit. The
information provided by the applicants indicate prima facie that the below mentioned programs constitute
actionable subsidies as per the Agreement on Subsidies and Countervailing Measures and the Countervailing
Duty Rules, 1995, that such subsidies were provided by the Government of Bangladesh and Government of
Nepal and that the exporters and producers of the subject goods in the subject countries may have benefitted
from these subsidies.
16. The prima facie evidence provided by the applicants shows that the producers and exporters of the subject
goods in the subject countries may have benefited from a number of subsidies granted by the Governments
and/or other public bodies in the subject countries. The following subsidies/programs have been alleged by
the domestic industry:
I. SUBSIDY SCHEMES IN BANGLADESH
a. Identified Programs in Export Processing Zones in Bangladesh
i. Program No. 1: Exemption from Dividend Tax
ii. Program No. 2: Provision of Electricity at Less Than Adequate Remuneration
iii. Program No. 3: Accelerated Depreciation
b. Identified Programs in Economic Zones in Bangladesh
iv. Program No. 4: 10 year Tax Holiday
v. Program No. 5: Exemption of duty on import of raw material, construction material etc.
vi. Program No. 6: Exemption of Stamp Duty and land registration fee
vii. Program No. 7: Exemption of VAT on utilities consumed inside the zone
c. Identified Programs as other subsidies
viii. Program No. 8: Cash Grants on export of Jute products.
ix. Program No. 9: Exemption from Import Duty and VAT on importation of Capital machinery and spares for
100% export-oriented enterprises
x. Program No. 10: Preferential tax rate for companies that are in the jute industry
xi. Program No. 11- Export Credit Facilities
xii. Program No. 12 – Various policies under National Jute policy- 2018
II. SUBSIDY SCHEMES IN NEPAL
i. Program No. 1: Cash Grants on export of Jute products
ii. Program No. 2: Tax Subsidies for Jute industries
H. CONSULTATION
17. The Authority, in terms of Article 13 of the Agreement on Subsidies and Countervailing Measures (ASCM),
invited the Government of Bangladesh and the Government of Nepal for consultation by scheduling a
consultation meeting on 1st September, 2025. The Government of Nepal and Government of Bangladesh did
not participate in the said consultation meeting. In the absence of any evidence regarding non-
countervailability of the alleged programs at this stage, the existence of alleged programs and quantification
of all the countervailable subsidies are required to be analysed through an investigation as per the relevant
Rules. However, the Authority may consider any request for consultation during the course of the
investigation.
I. INJURY AND CAUSAL LINK
18. Information furnished by the applicant companies has been considered for assessment of injury to the
domestic industry on account of subject imports from the subject countries. The applicants have furnished
prima facie evidence regarding the injury having taken place as a result of the alleged subsidization and
resulting in a significant volume of imports of the subject goods from the subject countries throughout the
injury period in both absolute as well as relative terms. The applicants have claimed that the subject imports
have also had a price suppressing and depressing effect on the domestic industry. The performance of the
domestic industry has deteriorated in respect of cash profit, profits, and return on investment over the injury
period, as a result of subsidized exports from the subject countries. Thus, the evidence provided by the
applicant companies prima facie shows material injury to the domestic industry caused by the alleged
subsidized imports from Bangladesh and Nepal.
J. INITIATION OF COUNTERVAILING DUTY INVESTIGATION
19. On the basis of the duly substantiated written application by or on behalf of the domestic industry, and
having satisfied itself, on the basis of the prima facie evidence submitted by the domestic industry,
substantiating subsidization of the subject goods originating in or exported from the subject countries, injury
to the domestic industry and causal link between such alleged subsidization and injury, and in accordance
with Section 9 of the Act read with Rule 6 of the CVD Rules, the Authority hereby initiates an investigation
to determine the existence, degree, and effect of any alleged subsidization in respect of the subject goods
originating in or exported from the subject countries and to recommend the amount of countervailing duty,
which if levied, would be adequate to remove the injury to the domestic industry.
K. PROCEDURE
20. Principles, as stated under Rule 7 of the CVD Rules shall be followed in the present investigation.
L. SUBMISSION OF INFORMATION
21. All the communications should be sent to the Designated Authority via email at email address dd15-
dgtr@gov.in, dir16-dgtr@gov.in and adv13-dgtr@gov.in. It should be ensured that the narrative part of the
submission is in searchable PDF/ MS Word format and data files are in MS Excel format. Submissions
requiring special software to access the files will not be accepted.
22. The known producers/exporters in the subject countries, the governments of the subject countries through
their embassies in India, and the importers and users in India known to be concerned with the subject goods
are being informed separately to enable them to file all the relevant information in the form and manner
prescribed within the time limit set out below.
23. Any other interested party may also make its submissions relevant to the investigation in the form and
manner prescribed within the time limit set out below. Any party making any confidential submission before
the Authority is required to make a non-confidential version of the same available to the other parties.
M. TIME LIMIT
24. Any information relating to the present investigation should be sent to the Designated Authority via email at
the following email addresses dd15-dgtr@gov.in, dir16-dgtr@gov.in and adv13-dgtr@gov.in within 30 days
from the date on which it was sent by the Designated Authority or transmitted to the appropriate diplomatic
representative of the exporting country as per Rule 7(4) of the CVD Rules. It may, however, be noted that in
terms of explanation of the said Rule, the notice calling for information and other documents shall be deemed
to have been received within one week from the date on which it was sent by the Designated Authority or
transmitted to the appropriate diplomatic representative of the exporting countries. If no information is
received within the prescribed time limit or the information received is incomplete, the Authority may record
its findings on the basis of the facts available on record in accordance with the CVD Rules.
25. All the interested parties are hereby advised to intimate their interest (including the nature of interest) in the
instant matter and file their questionnaire responses within the above time limit.
26. Where an interested party seeks additional time for filing of submissions, it must demonstrate sufficient cause
for such extension in terms of Rule 7(4) of the CVD Rules, 1995 and such request must come within the time
stipulated in this notification.
N. SUBMISSION OF INFORMATION ON A CONFIDENTIAL BASIS
27. Any party making any confidential submission or providing information on a confidential basis before the
Authority, is required to simultaneously submit a non-confidential version of the same in terms of Rule 8(2)
of the CVD Rules. Failure to adhere to the above may lead to the rejection of the response I submissions.
28. The parties making any submission (including Appendices/Annexures attached thereto), before the Authority
including questionnaire response, are required to file Confidential and Non-Confidential versions separately.
In case, the submission is made in multiple parts, it is instructed to provide an index table in each part
outlining the contents of all parts/emails and documents enclosed. Please ensure page numbering on all
submissions.
29. Where the original documents are in a language other than Hindi and English, the interested parties are
requested to ensure that the true translated version is provided along with the original documents.
30. The "confidential" or "non-confidential" submissions must be clearly marked as "confidential" or "non-
confidential" at the top of each page. Any submission made without such marking shall be treated as non-
confidential by the Authority, and the Authority shall be at liberty to allow the other interested parties to
inspect such submissions.
31. The non-confidential version is required to be a replica of the confidential version with the confidential
information preferably indexed or blanked out (in case indexation is not feasible) and summarized depending
upon the information on which confidentiality is claimed. The non-confidential summary must be in
sufficient detail to permit a reasonable understanding of the substance of the information furnished on a
confidential basis. However, in exceptional circumstances, the party submitting the confidential information
may indicate that such information is not susceptible to a summary, and a statement of reasons why
summarization is not possible must be provided to the satisfaction of the Authority. The other interested
parties may offer their comments on the confidentiality claimed within 7 days of receiving the non-
confidential version of the documents.
32. The Authority may accept or reject the request for confidentiality on examination of the nature of the
information submitted. If the Authority is satisfied that the request for confidentiality is not warranted or if
the supplier of the information is either unwilling to make the information public or to authorize its
disclosure in generalized or summary form, it may disregard such information.
33. Any submission made without a meaningful non-confidential version thereof or a good cause statement on
the confidentiality claim shall not be taken on record by the Authority.
34. The interested parties can offer their comments on the issues of confidentiality claimed by the domestic
industry within 7 days from the date of circulation of the non-confidential version of the documents in terms
of relevant paragraphs of this initiation notification.
35. The Authority on being satisfied and accepting the need for confidentiality of the information provided, shall
not disclose it to any party without specific authorisation of the party providing such information.
O. INSPECTION OF PUBLIC FILE
36. A list of registered interested parties will be uploaded on DGTR's website along with the request therein to
all of them to email the non-confidential version of their submissions to all other interested parties. The non-
confidential version of the questionnaire response or other submissions should preferably be circulated to all
other interested parties on the same day and, in no case, later than the day following the filing of submissions
on a confidential basis. Failure to circulate a non-confidential version of submissions/responses/information
might lead to the consideration of an interested party as non-cooperative.
P. NON-COOPERATION
37. In case any interested party refuses access to and otherwise does not provide necessary information within a
reasonable period, or significantly impedes the investigation, the Authority may declare such interested party
as non-cooperative and record its findings based on the facts available to it and make such recommendations
to the Central Government as deemed fit.
SIDDHARTH MAHAJAN, Designated Authority
Uploaded by Dte. of Printing at Government of India Press, Ring Road, Mayapuri, New Delhi-110064
and Published by the Controller of Publications, Delhi-110054.