The commerce ministry has started a probe into alleged dumping of ceramic rollers from China following a complaint by a domestic company.
The ministry's investigative arm - the Directorate General of Anti-dumping and Allied Duties (DGAD) - has found "sufficient" evidence of dumping of the product from the neighbouring country.
Futura Ceramics has filed an application before the DGAD for initiation of anti-dumping probe and imposition of duty on the imports as a counter-measure for cheap Chinese imports.
If established that the dumping has caused material injury to domestic players, the DGAD would recommend imposition of anti-dumping duty. After considering these recommendations, the finance ministry imposes it.
"The authority hereby initiates an investigation into the alleged dumping, and consequent injury to the domestic industry," the DGAD has said in a notification. Ceramic rollers, also known as ceramic pipes or tubes in market parlance, are used in several sectors, including transportation of tiles and stainless steel. Anti-dumping duties are levied to provide a level-playing field to the local industry by guarding against cheap below- cost imports.
Also on the probe radar are certain chemicals and steel products from the neighbouring country.
India is one of the most attractive markets for global producers due to its large population. Imposition of anti- dumping duty is permissible under the World Trade Organisation (WTO) framework. Both India and China are members of the Geneva-based body.
The duty is aimed at ensuring fair trading practices and creating a level-playing field for domestic producers vis-a- vis foreign producers.