Anti-dumping duty on chemicals import from US, China

The Dollar Business Bureau

In a bid to protect domestic makers from cheap imports, anti-dumping duty of $0.277- $0.404 per kg has been slapped on a compound that is utilized in the pharma industry, imported from China and the US.

The CBEC (Central Board of Excise and Customs) has put the anti-dumping duty for five years on Methyl Acetoacetate imports from China and the US.

The move came in after the recommendations from the regulatory body DGAD (Directorate General of Anti-dumping and Allied Duties).

After examining the imports, the DGAD findings revealed that the domestic industry suffered because the chemical compound was being imported below the normal values.

"The material injury has been caused by the dumped imports of subject goods from the subject countries,” said the DGAD in its findings while suggesting levy on chemical imports for the survival of the domestic makers.

Earlier in January 2015, the DGAD had initiated an investigation to determine if the chemical compound was being dumped in the Indian market. The probe was the result of a petition filed by Laxmi Organic Industries.

The chemical on which the anti-dumping duty has been levied is used in pharmaceutical, agrochemical and polymers industries.

WTO member nations can slap anti-dumping duty on imports of particular product if the exporter ships the product at the prices below the normal charges in home market. The duty can also be imposed if the imports dumped cause or threaten an injury to domestic industry.