[Originally published on LinkedIn at: https://www.linkedin.com/pulse/office-diaries-anti-dumping-duty-imported-catalysts-srivastava/
Some 16 years back, I retired after 34 years of service. During my career, after spending about a quarter of professional-life in Research & Development, I opted to be transferred to the Business Development wing. Here, I headed business operations of a division which was a pioneer in development of indigenous know-how and production and marketing of a group of eight specialty-chemicals called catalysts and other chemicals which were widely used in the Industry. I will be describing real-life situations and what lessons future managers may learn.
When you are open to accept new challenges in your professional career, sometimes not directly related to your training and background, life throws beautiful opportunities and thus, valuable experiences, which adds to your overall perception and personality. This is the 7th article in the series. See others at:
Not giving up till the last (Nov 18, 2020)
Excess of everything is bad (Nov 24, 2020)
What all is written in the equipment-manuals, take it with a pinch of Salt ! (December 4, 2020)
The Need for Common Sense (Dec 14, 2020)
When an Analogy with Marriage Ceremony Saved the Day ( Dec 27, 2020).
New Year’s Gifts and Huge humiliation (January 15, 2021)
Indian markets were just getting opened and liberalized and many foreign multinational corporations (MNCs) were trying to hold strong foot, legally and many times illegally also.
When I was still in service, I had to wear many caps, sometimes more than one simultaneously. In Business Development, one’s normal duties pertain to develop new businesses in domestic and foreign markets, marketing, sales promotion, organizing seminars and conferences, generating new enquiries, tendering, coordinating with production-plants for dispatches, follow-up for timely and due payments, trouble-shootings and other after sales-services, besides close liaising with the different departments of the Govt. of India, industry associations, professional bodies, etc. Others were producing techno-commercial-legal documents, filing them before semi-judicial statutory bodies in the Government of India, following-up the case in Appellate Tribunals and finally successfully fighting it out in the Highest court of the land : i.e. The Supreme Court of India was another facet of my professional career.
In India, in most modern fertilizer plants and oil-refineries, a set of following 8 number catalysts (either as single or in combination of many) are used - Cobalt-Molybdenum based feed Hydro-Desulphurization (HDS), Zinc Oxide based Desulphurization (ZDS), Nickel-Alumina- Calcium/ Magnesium based Primary Reformation (PR), Nickel-Alumina based Secondary - Reformation (SR) , Iron-Chrome (in some cases Copper also) based High Temperature Shift Conversion (HTS) and Copper-Zinc-Titanium based Low Temperature Shift Conversion (LTS), Nickel-Alumina based Methanation and Iron based Ammonia Synthesis Catalysts. Around the globe, only 5-6 companies had know-how to manufacture and supply these catalysts and in India, based on indigenous know-how, there was only one company. Another Indian manufacturer was located with plants in Kerala and Gujarat, which manufactured some of these and other catalysts in collaboration with and know-how from its principal - an European MNC.
In the late nineties, one of the European catalyst suppliers from Denmark started supplying some of these catalysts in India at almost half or even lower prices. These catalysts were six from the above list The Indian company had an edge over the foreign manufacturer as being both technically superior and commercially competitive. It started denting our market-share badly in the industry and thus the balance-sheet. Taking advantage of the World Trade Organization’s (WTO’s) guidelines, we collected through business intelligence all relevant information and prepared an Anti-Dumping case against the Danish suppliers. As the history of success-rate of world-wide Anti-Dumping cases (where a countervailing duty was imposed on the exporter), was only around 2%, we had to be very cautious and provide as much information as possible to the ‘ Designated-Authority ’ in the Commerce Ministry of Govt. of India., to help award a judgement in our favor. In order to prove the injury to the domestic catalyst-manufacturing industry by the Danish exporter, we had to collect their export prices, with verifiable proofs, in the European market, Middle-East and South-East and other countries. As the cost of production of these catalysts in Denmark were not available (Exporter did not cooperate and provided with some arbitrary un-audited figures), we did provide the cost of production in Europe from another European manufacturer, and also Danish exporter’s export-prices in India, where Indian suppliers were not in the race, being part of the package or turn-key projects. The designated authority was convinced with the evidence provided by us and after a series of thorough public meetings, Govt. of India accepted the recommendations of the ‘Designated- Authority’ and awarded an Anti-Dumping duty on all the six catalysts from Danish exporter, for a period of 3 years.
The Danish exporter challenged the judgement of the ‘Designated Authority’ before the court of Customs, Excise and Gold (control) Appellate Tribunal, under section 9 C of the Tariff Act. The Danish exporter landed a battery of the best legal brains of the country, who were charging those days around Rs. 2-5 lakh (USD 7K - 17 K) per appearance. We lost partially our case, on fragile technical grounds and Anti-Dumping duty was scrapped on 4 catalysts (out of 6 in the ‘ Designated-Authority’s judgement) and lowered in another two cases.
We, through the ‘ Designated- Authority ‘ of Govt. of India, challenged the judgement of the ‘Tribunal Court’ in the Supreme Court of India. It was allotted the bench of Justice B. N. Kripal ( who later on became the Chief Justice of India) and Justice N. Santosh Hegde. From Govt. side, the then solicitor general of India, Mr. Harish N Salve, Mr. Joseph Vellapalli and from Danish exporter side Mr. V. Lakshmikumaran and Mr. P. Chidambaram participated. Finally after marathon proceedings the judgement was awarded in our favor. In the 26 page long Supreme Court’s judgement, the court in its concluding order wrote “ impugned and set-aside the Tribunal’s order and allowed the appeal with costs”. Anti-Dumping Duty was restored on all the six catalysts, as per 'Designated Authority ' award. It was an unique experience, not because we won the case, but we could prepare a strong case against which the best legal brains couldn’t make a dent.
One should always be open to new challenges and work with positivity, hope and care and caution.