Government may impose anti-dumping on chemicals

India to impose anti-dumping duty on five countries for dumping low quality chemical.

The Dollar Business Bureau

India is planning to impose an anti-dumping duty, up to $168.76 per tonne on five countries including China and Iran, for the import of a chemical that is used in the packaging and textile industry. Anti-dumping duties are imposed to save domestic players from losses.

Indian players Reliance Industries Ltd (RIL) and MCC PTA India Corp have together filed an application asking for an anti-dumping investigation.

The Directorate General of Anti-Dumping and Allied Duties (DGAD) has discovered that ‘Purified Terephthalic Acid’ that was exported to India from Indonesia, Iran, China, Taiwan and Malaysia was of low-quality and had to be dumped. The DGAD confirmed under such conditions it becomes inevitable to impose anti-dumping duties on the exporting countries.

The DGAD in a notification said, “The authority recommends imposition of anti-dumping duty, so as to remove injury to the domestic industry.”

The Directorate General revealed that anti-dumping duties could vary between $83.08 per tonne to $168.76 per tonne depending on the imports of the chemicals. While the process for the imposition of the anti-dumping duty is recommended by DGAD, the finance ministry executes it.

Countries normally initiate an anti-dumping investigation to find out if the below-cost imports are hurting the domestic industry. Duties imposed are clearly specified under the WTO.

 

The Dollar Business Bureau - Jun 14, 2016 12:00 IST
 
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