DGAD imposes 6 month provisional ADD on Korea, Japan and China for dumping chemical used in furniture making

DGAD imposes 6 month provisional ADD on Korea, Japan and China for dumping chemical used in furniture making

Korea, Japan and China are the primary exporters of TDI to India.

Sheela Mamidenna

Toluene diisocyanate (TDI) is a chemical used in the production of polyurethanes, primarily used in the making of flexible foam used in furniture, bedding and carpet underlay, packaging applications and in the manufacture of coatings, sealants, adhesives and elastomers.

Korea, Japan and China are the primary exporters of TDI to India. Upon receiving a complaint from Gujarat Narmada Valley Fertilisers and Chemicals (GNVFC) on the dumping of the chemical in India below its normal value, thereby causing injury to the domestic manufacturer, the DGAD has imposed a provisional anti-dumping duty for 6 months on the above 3 countries.

GNVFC is the sole manufacturer of TDI in India and constitutes “a major proportion” of the domestic production; in fact 100% share of domestic production.

GNVFC is the sole manufacturer of TDI in India and constitutes “a major proportion” of the domestic production; in fact 100% share of domestic production. There are two plants producing 166 MT and 54MT of TDI in India of which 80% was used domestically while 15% was exported to Africa, US and to the Gulf countries. When asked to share his thoughts on the value of ADD fixed by the DGAD on toluene diisocyanate (TDI), G.S. Maharaja, Executive Director Marketing at Gujarat Narmada Valley Fertilisers and Chemicals said, “GNVFC is okay with the values specified by the DGAD, though we expected better values.”

"GNVFC used to lose out nearly $300 to $400/ MT due to the dumping caused by these countries which will now be recovered and TDI will be marketed well within India and exported to other countries too," Maharaja said.

The investigation was carried out for 12 months between April 1, 2015 to March 31, 2016. An anti dumping duty ranging between $0.14 to $0.40 per kg has been imposed on the chemical imports from Korea, Japan and China.

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Sheela Mamidenna - Jun 06, 2017 12:00 IST