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After a protracted legal battle by Jute Manufactures Development Council (JMDC) for seven years, the Brazilian Government has lifted the Anti-Dumping Duty on import of jute bags into Brazil for 5 Indian Jute Companies - Birla, Cheviot, Howrah, Ganges & Gloster and lowered the Duty for others from 38.9 per cent to US $ 0.22/KG (27.8%). Indian Jute producers/exporters were subjected to this anti-dumping duty for the past twelve years.
JMDC, under the guidance of Ministry of Textiles, has been fighting this case with the Brazilian Authorities since 1997. JMDC took a proactive role in defending the Indian producers/ exporter. This is definitely a great achievement on the part of the Council towards promoting the cause of Indian Jute Industry in the international field of Trade and Commerce.
The Brazilian Government imposed Anti-Dumping Duty on Import of jute bags from India and Bangladesh on 30th September, 1992 for a period of five years. The Anti-Dumping-Duties on Imports from India were 24.8 per cent on bags made of jute yarn and 56 per cent on jute bags. With this imposition of Anti-Dumping Duty, the export of jute bags from India to Brazil practically came down to NIL. Despite submission of documents, the Brazilian authorities in September, 1996, re-imposed Anti-Dumping Duty at the rate of 38.9 per cent for all jute bags imported from India into Brazil for another 5 years.
Later, on examination, it was revealed that the Brazilian authorities had relied upon two forged invoices, from a nonexistent Indian company – DADJ Bag Manufacturing Co., which aimed at indicating a high value for domestic trading only to prove dumping. The matter was brought to the notice of the Brazilian authorities who initiated a Criminal investigation in 1999 by the Federal Police of Brazil, the result of which never came to light. Two high powered delegations; i.e. one led by Secretary, Textiles in 1999 and the other by the Hon’ble Minister of Textiles in 2000 to Brazil, to sort out matters, did not yield any result. JMDC’s two Review Petitions were also turned down in 1999 and 2000.
Finally, when the second sunset review was initiated by Brazilian Authorities in 2003, for re-imposition/continuation of the duty for a further period of 5 years, JMDC contested it aggressively by engaging lawyers in India and Brazil. Mr. Krishnan Venugopal, Senior Advocate, Supreme Court of India and Mr. A.K. Gupta of TPM Consultants Pvt. Ltd., New Delhi in India and Carvalho De Freitas E Ferreira, Advogados Associados, in Brazil represented on behalf of the Council in contesting the case. Indian Consulate General in Sao-Paulo also extended their support to JMDC’s detailed exercise. Brazilian authorities even conducted local investigation and examination of records of the participating Jute Mills, in India. It was proved beyond doubt that their export prices were higher than their domestic prices and there was no necessity for these companies to take recourse to dumping for export into Brazil. The Brazilian authorities had no option, but to withdraw the imposition against these 5 companies. With this decision jute products can now be exported to Brazil unhindered.
Brazil is one of the greatest producers of coffee and cocoa. The country requires large quantities of jute bags for packing of coffee and cocoa beans for export.
The end of 2004 saw JMDC lead India to another legal victory. The council’s persistent legal initiative has ultimately succeeded in rejection of European Patent Case on Waste Treatment using Hessian, thereby thwarting the move for hefty royalty claim by GEOHESS for the aforesaid use of Hessian in large number of European countries covered by European patent application. JMDC pleaded at the European Patent Office for revocation of the impugned patent and refuted the arguments of the patentee by substantiating the similarity of Hessian with Geo-textiles. JMDC also argued that the patent is against the “Order Public” because, if allowed it would tend to block free trade and business of Hessian in European markets covering 14 countries and would lead to imposition of undue royalty and license fee on the public. The Appeal Board rejected the patent on the ground of “lack of inventive steps”.
On the domestic front, the JMDC has promoted Jute’s great potential in the use of Jute Geo-textile (JGT) in roads, particularly in rural areas. JMDC has entered into a MoU with the National Rural Roads Development Agency (NRRDA), to undertake a Pilot Project in rural roads under PMGSY with Jute Geotextiles. The Pilot Project will cover at lease two stretches each in 6 states totaling to around 50 km. Successful completion of the project is expected to bring a new future to the Jute Industry.
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