The revenue department has imposed the duty a levy to discourage cheap imports on bulk drug Cefadroxil Monohydrate originating in or exported from the EU for five years.
It has been levied following recommendations by the Directorate General of Anti-dumping and Allied Duties (DGAD).
The duty "shall be levied for a period of five years (unless revoked, amended or superseded earlier)," a notification by the Central Board of Excise and Customs said.
Depending on different factors, the duty will be $7.88 and $9.03 per kilogramme on import of bulk drug. The DGAD had carried a probe in the imports and concluded the bulk drug entered the Indian market from EU below normal value resulting in dumping and thus causing "material injury" to the domestic industry.
The investigation was done after DGAD received an application from pharma major Lupin, Mumbai, on behalf of the domestic industry, alleging dumping of the bulk drug "originating in or exported from the European Union".
Hyderabad-based Aurbindo Pharma had supported the application.
Bulk drug Cefadroxil Monohydrate is an active pharmaceutical ingredient (a raw material) used for the manufacturing of pharmaceutical formulations.
Countries initiate anti-dumping probes to check if domestic industry has been hurt because of a surge in below- cost imports. As a counter-measure, they impose the duty, which is WTO compatible.