Govt may impose anti-dumping duty on chemical from China, Turkey
India has initiated a probe against cheap imports of a chemical, used in paint and pharma industry, from China and Turkey as it has found sufficient evidence of dumping.
Imposition of the duty would help in guarding the domestic players from cheap imports.
Rashtriya Chemicals and Fertilisers and Balaji Amines have jointly filed the application before the Directorate General of Anti-Dumping and Allied Duties (DGAD) for initiation of the investigation and imposition of the duty on imports of 'Dimethylacetamide'.
The DGAD has found "sufficient evidence of dumping" of the chemical from these two countries.
"The authority initiates anti-dumping investigations into the existence, degree and effect of alleged dumping," DGAD said in a notification.
The period of investigation is April 2015 to September 2016 (18 months).
Countries initiate anti-dumping probes to determine if the domestic industry has been hurt by a surge in below-cost imports. As a counter-measure, they impose duties under the multi-lateral WTO regime.
Anti-dumping measures are taken to ensure fair trade and provide a level-playing field to the domestic industry. They are not a measure to restrict imports or cause an unjustified increase in cost of products.
Unlike the safeguard duty, which is levied in a uniform way, anti-dumping duty varies from company to company and country to country.
India has so far initiated 203 anti-dumping and two countervailing (anti-subsidy) investigations involving China since January 1994.