India has initiated a probe against dumping of a chemical used in glass and other industries from China to ring-fence local manufacturers from cheap in-bound shipments. Sandhya Dyes and Chemicals Ltd has filed the application before the Directorate General of Anti-Dumping and Allied Duties (DGAD) for initiation of the investigation and imposition of the duty on the imports of ‘Phosphorus Pentoxide’.
The DGAD has found “sufficient evidence of dumping” of the chemical from China. “The authority hereby initiates an investigation into the alleged dumping, and consequent injury to the domestic industry,” DGAD said in a notification. In the probe, the DGAD will determine the existence, degree and effect of alleged dumping and then recommend the quantum of anti-dumping duty, which if levied, would be “adequate” to remove the injury to the domestic industry.
The period of investigation is July 2015 to September 2016 (15 months), including data from 2013 onwards. 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.
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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.
Unlike the safeguard duty, which is levied in a uniform way, anti-dumping duty varies from company to company and country to country.
India is one of the largest users of this duty against countries, including China.