India is likely to levy an anti-dumping duty of USD 1.04 per kg on import of Chinese ceramic table and kitchenware in an attempt to check cheap import from flooding the domestic market. The commerce ministry’s investigation arm – the Directorate General of Anti-Dumping and Allied Duties (DGAD) -in its preliminary findings has concluded that the products were exported to India by Chinese firms below their normal value. The domestic industry has suffered material injury due to the dumping of “ceramic table and kitchenware, excluding knives and toilet items” from China, the DGAD has said in a notification. “The authority considers it necessary and recommends imposition of provisional anti-dumping duty on imports of these goods,” it added.
The All India Pottery Manufacturers’ Association (AIPMA) and the Indian Ceramic Society had filed the application for the anti-dumping probe. Total import of the products from China has spiked to 10,160 tonnes during 2015-16, from 5,519 tonnes in 2012-13. While the DGAD recommends the duty, the finance ministry imposes it. India finds itself at the receiving end of dumping as it is one of the most attractive markets for global producers because of its large middle-class population.
Countries initiate anti-dumping probes to determine if the domestic industry has been hurt by a surge in below-cost import. As a counter-measure, they impose duties under the multi-lateral WTO framework. These duties also ensure fair trade by providing a level-playing field to domestic players. They are not a measure to restrict import or cause an unjustified increase in cost of products.