The proposed duty is aimed at ensuring fair trade practices and create a level playing field for domestic players.
The Narendra Modi-led government is likely to impose an anti-dumping duty for a period of five years on the import of ‘Meta Phenylene Diamine’, a chemical which is used in dye and photography industry. The move is to protect domestic players from cheap imports from China.
The Directorate General of Trade Remedies (DGTR) has recommended the anti-dumping duty on the Chinese chemical after concluding its probe, in which it had found that Chinese companies are dumping the chemical and it is likely to increase if the current duty is allowed to cease.
“The authority recommends imposition of anti-dumping duty…so as to remove the injury to the domestic industry,” the DGTR has said in a notification.
The duty recommended by DGTR – the investigation arm of the commerce ministry – would range between $1,015,44 per tonne and $573.92 per tonne. The Ministry of Finance would take the final call on the imposition of the proposed anti-dumping duty. The proposed duty is aimed at ensuring fair trade practices and creating a level playing field for domestic players with regard to foreign producers and exporters.
To check cheap imports from countries, including the neighbouring country China, India has imposed anti-dumping duty on several products. In the last financial year 2017-18, India’s current account deficit rose to $63.12 billion from $51.11 billion in the year-ago period.