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The center is most likely to put an anti-dumping duty of over USD 397 per tonne on a chemical that is used in construction and dyes industry and is being imported from China. The government is deciding on this move to safeguard the domestic makers of the chemical ‘Sulphonated Naphthalene Formaldehyde’ from the cheap imports of the same coming in from China.
The Directorate General of Anti-dumping and Allied Duties (DGAD) is the Commerce ministry’s arm for probing and has given a conclusion from its findings that the chemical has been exported from China to India on a price that is below normal and so has resulted in dumping.
“The domestic industry has suffered material injury due to the dumping of the product,” DGAD declared in a notification. The organization has given a recommendation of “imposition of definitive anti-dumping duty” for a time period of five years to safeguard the domestic industry and helps it in recovering from an injury caused due to cheap dumping as well.
Many chemical companies had asked for probes on dumping from China. The DGAD, however, can only recommend the duty. It is the Finance Ministry’s decision to impose it. The anti-dumping probe is practiced by countries to find out if the domestic industry is injured by the below the costs imports.
If it is proved, they impose anti-dumping duties under the multi-lateral WTO regime. To make the trade fair and giving a level-playing field to the local industry, anti-dumping measures are practised. These measures cannot be used for the import curbing or to increase the price of a product without any reason. The anti-dumping steps are to make sure that a fair trade happens and the domestic industry gets an equal level to compete.