Government tightens screws against unfair trade practices
Sri Lanka is takings measures to safeguard domestic industry from unfair trade practices by introducing new legislation against the haphazard import of goods to Sri Lanka.
The Safeguard Measures Bill has been gazetted by the Minister of Industry and Commerce on October 9 and will be presented in parliament soon. It has provisions for the conduct of investigations and the application of safeguard measures on products imported into Sri Lanka.
This “safeguard” action (i.e., restrict imports of a product temporarily) is aimed at protecting a specific domestic industry from an increase in imports of any product which is causing, or threatening to cause, serious injury to the industry.
According to the provisions of the bill, the safeguard measures could be applied on products imported into Sri Lanka, where such products are being sold at a price less than the price prevailing in its domestic market causing or threatening to cause material injury to the domestic industry.
The designated authority, the Director General of Commerce could initiate necessary action after investigations and subsequent imposition of anti-dumping duties as safeguard measures in the public interest.
Any decisions relating to the application, suspension or withdrawal of safeguard measures and the modification or extension of periods of application of safeguard measures shall be the responsibility of the Inter Ministerial Committee appointed in accordance with the provisions of the bill.
The local industry must be able to show that dumped imports are causing or are threatening to cause material injury to the ‘domestic industry to take necessary action by the Director General of Commerce.
The Minister of Industry and Commerce has already gazetted another bill to provide for the investigation and imposition of anti-dumping and countervailing duties on imported products.
The Anti-Dumping and Countervailing Duties Bill has provisions for the imposition of “Anti-Dumping Taxes” on imported goods in the domestic market which are sold at a lower price than their actual value and “Countervailing Taxes” could be imposed against the entry into the local market of imported goods at low prices.
In the meantime, the Public Finance Department of the Treasury has issued a circular recently on granting preference for domestically manufactured goods for local bidders who submit bids for tenders under domestic funds.
This action has been taken to encourage local entrepreneurs and domestic manufacturing industries.
All public sector heads of institutions have been informed that they should incorporate the relevant provisions in the respective bidding documents so that “domestic preference shall be bid evaluation criteria”.