Countervailing duty probe on China synthetic rubber
New Delhi: India has initiated a countervailing duty probe into increased imports of a Chinese synthetic rubber - Fluoroelastomers, following a complaint from Gujarat Fluorochemicals.
The move is aimed at guarding domestic players from the increase in imports that are subsidised by the neighbouring nation.
The investigation has been initiated by the Directorate General of Trade Remedies (DGTR), an arm of the commerce ministry.
Gujarat Fluorochemicals has filed an application before the DGTR alleging subsidisation of the product from China and requested for initiation of an anti-subsidy investigation for levy of countervailing duties on the imports. The applicant has alleged that the producers/exporters of the product have benefited from the actionable subsidies provided at various levels by the Chinese government, including the governments of the different provinces and municipalities, the DGTR has said in a notification.
The applicant has claimed that subsidised imports of the product are materially retarding the establishment of the domestic industry.
The authority prima facie finds "sufficient evidence" of subsidisation of the goods from China, injury to the domestic industry and causal link between the alleged subsidisation and injury exist to "justify initiation of an anti-dumping investigations" to determine the existence, degree and effect of subsidisation and to recommend the amount of countervailing duty," it said.