ISLAMABAD: The domestic industry is facing severe challenges due to the non- appointment of members at the Anti-Dumping Appellate Tribunal (ADAT).
According to sources, this lack of attention by the federal government has led to a significant backlog of pending cases, causing frustration among stakeholders.
The Anti-Dumping Appellate Tribunal became dysfunctional as all its members, including the chairman, completed their tenure on October 4, 2024.
The responsibility now lies with the federal government to reconstitute the tribunal as mandated by Section 64 (2) of the Anti-Dumping Duties Act, 2015.
According to the Act, the tribunal is to comprise three members, including a chairman and two other members, all appointed by the federal government.
It is pertinent to share that the National Tariff Commission (NTC) conducts a thorough investigation (usually spread over 12 months) to investigate the dumping practices by exporters/ foreign producers before making any determination and impose, where necessary, anti-dumping duties to ensure level playing field for the domestic industry against the influx of dumped imports. However, this determination is subject to appeal before the Anti-Dumping Appellate Tribunal.
The instant Tribunal, which serves as an appellate body for orders issued by the NTC, has been non-functional since October 2024 due to the federal government’s failure to appoint its Chairman and members.
In absence of a functional Tribunal, numerous appeals have been filed in various interested parties, many of which are time-barred and infructuous. On parallel, Appellants of these time-barred and infructuous Appeals (mostly importers) taking advantage of the loopholes, have further invoked the Constitutional Jurisdiction by filing writ petitions, misleading the High Courts about the NTC’s determinations, further burdening the higher courts with frivolous litigation. Consequently, the High Courts are compelled to grant them interim injunctions, which adversely effects the performance of the domestic industry and loss to the national exchequer.
The instant misuse of judicial processes undermines the NTC’s efforts, exacerbate the situation already being faced by the domestic industry in the form of dumped imports, undermining the effectiveness of trade remedy measures adopted.
The domestic industry has urged the federal government to act swiftly to reconstitute the Anti-Dumping Appellate Tribunal as this step is essential to restore the balance in trade practices and protect the domestic industry from unfair competition.
A functional Tribunal will ensure that appeals are addressed promptly and fairly, reducing the misuse of judicial processes and upholding the integrity of the anti-dumping framework.
Additionally, the government needs to prioritise the establishment of a robust mechanism to prevent delays in Tribunal appointments in the future which may include predefined timelines for appointments and enhanced coordination between relevant departments. Such measures would ensure the continuity of the Tribunal’s operations and maintain the efficacy of the trade remedy laws in Pakistan.
Copyright Business Recorder, 2024