1. Government to impose anti-dumping duty on Chinese chemical

Government to impose anti-dumping duty on Chinese chemical

SRF Ltd, the sole producer of the chemical in India had filed an application alleging dumping of the product China. The applicant had requested for continuation and enhancement of the anti-dumping duty, imposed on the imports.

By: | New Delhi | Published: June 14, 2016 6:22 PM
SRF Ltd, the sole producer of the chemical in India . (Reuters) SRF Ltd, the sole producer of the chemical in India . (Reuters)

India is likely to impose anti-dumping duty of $1.22 per kg on import of a chemical, used mainly by refrigerant industry, from China to protect domestic players from cheap inbound shipments.

SRF Ltd, the sole producer of the chemical in India had filed an application alleging dumping of the product China. The applicant had requested for continuation and enhancement of the anti-dumping duty, imposed on the imports.

In its final findings of the sunset review, the Directorate General of Anti-Dumping and Allied Duties (DGAD), under the commerce ministry, has concluded that there is “continued dumping” of the chemical – ‘1,1,1,2- Tetrafluoroetha’ from China.

“The authority is of the view that the anti-dumping measures are required to be extended in respect of China… Therefore, authority considers it necessary to recommend continued imposition of definitive anti-dumping duty on the imports,” the DGAD said in a notification.

While DGAD recommends the duty, the Finance Ministry imposes it.

Last time in July 2011, the government had imposed the restrictive duty of up to $1.15 per Kg on the imports for a period of five years.

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.

According to a WTO report, India, US and Brazil were the leading initiators of anti-dumping investigations in 2015.

The WTO members had initiated 107 new anti-dumping investigations during January to June 2015, slightly up from 106 in the same period in 2014.

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