Government has started a probe into alleged dumping of a chemical, used in the coating industry, from Saudi Arabia to recommend an import duty on the compound with a view to protecting the domestic players.
Andhra Petrochemicals has filed the application before the Directorate General of Anti Dumping & Allied Duties (DGAD) for initiation of anti-dumping duty investigation into imports of ‘Normal Butanol’ originating in or exported from Saudi Arabia.
The DGAD has found “sufficient prima facie evidence” of dumping of the chemical from the Arab country.
“The authority hereby initiates an investigation into the alleged dumping, and consequent injury to the domestic industry … to determine the existence, degree and effect of any alleged dumping and to recommend the amount of anti- dumping duty, which if levied, would be adequate to remove the injury to the domestic industry,” the DGAD said in a notification.
The period of investigation covers April 2015 to March 2016. However, the injury investigation period will also cover the period between 2012 and 2015.
While the DGAD, under the commerce ministry, investigates and recommends the duty, the Finance Ministry imposes the levy.
Countries start anti-dumping probes to determine whether their domestic industries have been hurt because of below-cost imports. As a counter measure, they impose duties under the multilateral regime of WTO.
The duty is aimed at ensuring fair trade practices and creating a level-playing field for domestic producers vis-a- vis foreign producers and exporters.
India has already imposed anti-dumping duty on several products to tackle cheap imports from some countries, including China.
According to a WTO report, India, Brazil and the US were leading initiators of anti-dumping investigations in 2015.