India may impose anti-dumping duty on Chinese antibacterial drug Ciprofloxacin Hydrochloride

By: |
June 16, 2020 5:18 PM

The directorate in a notification said that in its probe, it has concluded the product has been exported to India by Chinese firms at dumped prices and due to this the domestic industry has suffered material injury.

Ciprofloxacin Hydrochloride is used to treat different types of bacterial infections, including skin infections, bone and joint infections, respiratory or sinus infections, urinary tract infections, and certain types of diarrhea.Ciprofloxacin Hydrochloride is used to treat different types of bacterial infections, including skin infections, bone and joint infections, respiratory or sinus infections, urinary tract infections, and certain types of diarrhea. (Representative image)

India may impose anti-dumping duty on Chinese antibacterial drug Ciprofloxacin Hydrochloride with a view to guard domestic industry from cheap imports from the neighbouring country.

Aarti Drugs Ltd had filed the application for imposition of anti-dumping duty on imports of the medicine from China.

After conducting a probe, the commerce ministry’s investigation arm, Directorate General of Trade Remedies (DGTR), in its preliminary findings has recommended imposition of provisional anti-dumping duty on the product from China.

The duty recommended is in the range of USD 0.94 per kg to USD 3.29 per kg.

The directorate in a notification said that in its probe, it has concluded the product has been exported to India by Chinese firms at dumped prices and due to this the domestic industry has suffered material injury.

“The authority recommends imposition of provisional anti-dumping duty…so as to remove the injury to the domestic industry,” it said.

Imports of the product from China increased to 377 tonnes during the period of investigation (April 2018 – June 2019) from 117 tonnes in 2015-16.

While DGTR recommends the duty, the finance ministry takes the final call to impose the same.

Ciprofloxacin Hydrochloride is used to treat different types of bacterial infections, including skin infections, bone and joint infections, respiratory or sinus infections, urinary tract infections, and certain types of diarrhea. It acts as anti-infective agent, and an antibacterial drug.

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

Dumping impacts the price of the 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.

The 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.

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