Commerce Ministry seeks anti-dumping duty on certain rubber imported from 4 countries

By: |
May 13, 2021 6:17 PM

Dumping impacts the price of that product in the importing country, hitting margins and profits of manufacturing firms.

In international trade parlance, dumping happens when a country or a firm exports an item at a price lower than the price of that product in its domestic market.PayPal had stopped its payment operations in India on April 1 to instead focus on their cross-border trades and exports for local businesses.

The commerce ministry recommended imposition of anti-dumping duty on a certain type of rubber imported from China, European Union, Japan, and Russia, in order to guard domestic manufacturers from cheap inbound shipments.

Directorate General of Trade Remedies (DGTR) has recommended the duty after concluding in its probe that ”Acrylonitrile Butadiene Rubber” from these regions has been exported at dumped prices into India, which impacted the domestic industry.

“The authority recommends imposition of definitive anti-dumping duties on import of subject goods originating in or exported from subject countries,” DGTR has said in a notification.

The recommended duty is the difference between the landed value of the product and USD 2,086 per tonne.

Apcotex Industries Ltd had filed an application before the directorate for imposition of anti-dumping duty on the imports. It had alleged that dumping of the product from these countries are impacting the domestic industry.

The product is used in the manufacture of various rubber articles where resistance to oil, abrasion and heat applications are involved, such as oil seals, hoses, automotive products, gaskets, rice dehusking rolls, printers, and fabrics.

In international trade parlance, dumping happens when a country or a firm exports an item at a price lower than the price of that product in its domestic market.

Dumping impacts the price of that product in the importing country, hitting margins and profits of manufacturing firms.

According to global trade norms, a country is allowed to impose tariffs on such dumped products to provide a level-playing field to domestic manufacturers.

The duty is imposed only after a thorough investigation by a quasi-judicial body, such as DGTR, in India.

Imposition of anti-dumping duty is permissible under the World Trade Organization (WTO) regime.

The duty is aimed at ensuring fair trading practices and creating a level-playing field for domestic producers vis-a-vis foreign producers and exporters.

Do you know What is India expected to grow 10 pc during current fiscal: NCAER Director General Poonam Gupt,FinMin releases Rs 9,871 cr grant to 17 state, Cash Reserve Ratio (CRR), Finance Bill, Fiscal Policy in India? FE Knowledge Desk explains each of these and more in detail at Financial Express Explained. Also get Live BSE/NSE Stock Prices, latest NAV of Mutual Funds, Best equity funds, Top Gainers, Top Losers on Financial Express. Don’t forget to try our free Income Tax Calculator tool.

Financial Express is now on Telegram. Click here to join our channel and stay updated with the latest Biz news and updates.

Next Stories
1FM reviews capex, asks DoT to expedite digital expansion
2Non-food credit growth stuck at 6.5% despite festive season onset
3Nirmala Sitharaman asks civil aviation ministry, Dept of Telecom to fast-track project implementation