The Cabinet has directed the Commerce Ministry to ensure that revised National Tariff Commission (NTC) Act, (to be tabled in the Parliament) should not delegate Commission's powers to less than two members, fearing that one member may abuse powers.
The Cabinet was informed on July 27, 2011 that the NTC, established under the NTC Act 1990, is responsible to advise the government on protection of domestic industry, mainly through appropriate adjustments in import tariffs and to carry out anti-dumping investigations for determination to check and curb illegal dumping of imported goods in the country under the Anti-Dumping Ordinance, 2000. Section 5 of the NTC, 1990, envisages that the Commission shall consist of one Chairman and two members.
The Supreme Court, in its judgement of October 29, 2009, held that in the absence of a provision on quorum, any order/determination made by the Chairman and one member cannot be termed as a decision of the Commission. The Supreme Court's interpretation of sections 5 and 7 of the Act has, thus, created serious administrative/ legal implications, which need to be resolved. Hence, it was proposed to insert two sections viz, section 5-A and section 7-A through a Bill for incorporating clarity in the powers of the Commission.
The proposed amendments will allow any two members to exercise powers conferred upon the Commission with regard to the cases that fall within its jurisdiction. Commerce Ministry maintained that most of the time it is neither administratively possible nor convenient to muster up all the three members of the Commission (including Chairman) for every single matter under investigation/adjudication.
Besides, retirement/transfer of any of the members of the Commission may also cause legal incompetence for the Commission to hand down final decisions in cases/investigations pending before it. Keeping in view the decision of Supreme Court, the NTC proposed following amendments in Section 5 and 7 of the NTC Act, 1990: [New Section] "5A: Manner of Disposal of Case.
Notwithstanding anything contained in this Act, all or any of the powers of the Commission under this Act may be delegated to any of the two Members of the Commission who shall exercise the powers so delegated which shall have the same sanctity and shall be binding in the same manner as if the same is exercised by the Commission.
Explanation. - For the purpose of this section two Members means the Chairman and a member or two members of the Commission." The Cabinet, sources said, while approving the proposed amendments directed the Commerce Ministry that final draft must be introduced in the National Assembly/Senate which shall clearly provide for the delegation of the powers of the Commission to not less than two members of the Commission.