Taiwan moves WTO against India over flash drive duties

Taiwan has moved the dispute settlement body of the World Trade Organisation (WTO) against India's duties on Taiwanese shipments of USB flash drives, the WTO said on Friday.

''Chinese Taipei notified the WTO Secretariat on 24 September 2015 of a request for consultations with India regarding anti-dumping duties imposed by India on USB flash drives imported from Chinese Taipei,'' the WTO said in a brief statement.

The request for consultations formally initiates a dispute in the WTO. Consultations give the parties an opportunity to discuss the matter and to find a satisfactory solution without proceeding further with litigation.

After 60 days, if consultations have failed to resolve the dispute, the complainant may request adjudication by a panel.

India imposed anti-dumping duties on import of flash drives from Chinese Taipei on 22 May, alleging dumping of the computer accessory. Taiwan, however, is disputing both the imposition of the levies and the way India justified their imposition, the WTO said.

USB flash drives, also known by various other names such as pen drive, keychain drives, key drives, USB sticks, flash sticks, jump sticks, USB keys or memory keys, are imported en masse from Taiwan as they are the cheapest.

Storage Media Products Manufacturers and Marketers Welfare Association on behalf of Moser Baer, the sole producer of the product in India, had moved the DGAD for imposition of the duty to protect the domestic industry from cheap imports.

Subsequently, on the recommendations of the Directorate General of Anti-Dumping and Allied Duties (DGAD), the Central Board of Excise and Customs (CBEC) had imposed the anti-dumping duty on flash drives imported from Taiwan.

India has 60 days to resolve the dispute, or Taiwan could ask the world trade body to adjudicate.