DGAD recommends anti-dumping duty on resorcinol imports from China, Japan
The Dollar Business Bureau
In order to safeguard the domestic industry against cheap imports, Directorate General of Anti-dumping & Allied Duties (DGAD) has recommended imposition of anti-dumping duties on the imports of resorcinol from China and Japan for the period of three years.
Resorcinol is a phenolic compound that is used in manufacturing of medicines, resins, dyes, plastics and various other organic chemical compounds.
“The Authority is of the view that imposition of anti-dumping duty is required to offset dumping and injury. Therefore, the Authority considers it necessary to recommend imposition of definitive anti-dumping duty on imports of subject goods from the subject countries for a period of three years only,” DGAD said in a notification (No./14/37/2016-DGAD).
“The Authority, after examining the issues raised and submissions made by the interested parties and facts made available before the Authority, concludes that the product under consideration has been exported to India from the subject countries below its normal value, resulting in dumping and the domestic industry has suffered material injury due to dumping of the product under consideration from the subject countries,” it said.
DGAD noted that the overall demand for resorcinol in India has increased in period of investigation as compared to the base year. It is also noted that during 2013-14 there was a hike in demand which is resulted in increased domestic sales.
The period of investigation was from April 1 2015 to March 31, 2016 (12 months). However, for the purpose of analysing injury, the data of previous three years, i.e from 2012 to 2015, has also been considered.
The application for initiation of anti-dumping investigation with the DGAD has been filed by M/s Atul Ltd, the only domestic producer of the product under consideration.
Generally, the purpose of anti-dumping duty is to eliminate injury caused to the domestic industry by the unfair trade practices of dumping so as to re-establish a situation of open and fair competition in the market, which is in the general interest of the country.
India’s imports of resorcinol and its salts stood at $17.99 million in the financial year 2016-17. Out of this, Japan alone exported $12.98 million of the compound while China exported 4.82 million worth resorcinol to India.
