India to levy anti-dumping duty on Chinese chemicals
The Dollar Business Bureau
The Indian government is likely to levy anti-dumping duty of $1.22 per kg on chemicals imported from China to safeguard the interests of the local manufacturers. The chemical that comes through the inbound shipments from China is mostly used by the refrigerant industry as it is very cheap when compared to the domestic prices.
The only producer of that chemical in India SRF Ltd had urged the government to continue and enhance the anti-dumping duty on the Chinese imports. Under the Union Commerce Ministry, the Directorate General of Anti-Dumping and Allied Duties (DGAD) has reviewed this matter. Finally, the authority found that the chemical – 1,1,1,2- Tetrafluoroetha is continuously being dumped from China.
The anti-dumping measures should be extended on the imports from China, the DGAD said. It recommended to continue the imposition of anti-dumping duty on the Chinese imports. The Union Finance Ministry imposes the duty, after DGAD recommends it. The Indian government had earlier levied restrictive anti-dumping duty of up to $1.15 per kg in July 2011 over Chinese imports for around five-year period.
Many countries investigate anti-dumping to know whether their domestic industrial growth has been effected due to the cheap imports. To control such damage, respective governments would levy anti-dumping duties as specified by the World Trade Organization (WTO). This will ensure fair imports and exports between the countries.
Anti-dumping duties offer a level-playing field to the local manufacturers. But they are not meant to restrict the imports from other countries. They are also not intended for an unfair increase in the price of products.
India, USA and Brazil are the top initiators of anti-dumping probes in the year 2015 as per the WTO report. Around 107 new investigations have been initiated by the WTO members during the first six months of 2015, while there were 106 investigations probed during the corresponding period in 2014.