India starts probe against dumping of chemical from China

The Dollar Business Bureau

India has started a probe against the dumping from China for a chemical that is used in glass and other sectors to safeguard the domestic manufacturers from cheap imports.

The Directorate of Anti-Dumping & Allied Duties (DGAD) has found enough evidence of dumping from China for the chemical.

“The authority hereby initiates an investigation into the alleged dumping, and consequent injury to the domestic industry,” it said in a notification.

The DGAD, in its probe, will determine the degree, existence and effect of the alleged dumping of the chemical and after that recommend the quantum of the duty to be levied, which would be sufficient to remove the injury caused to the local industry.

The investigation period is 15 months, i.e. from July 2015 to September 2016, which include the data from the year 2013 onwards.

The application has been filed by Sandhya Dyes and Chemicals Ltd before the DGAD for initiating the investigation and imposing the anti-dumping duty on the in-bound shipments of ‘Phosphorus Pentoxide’.

Countries start probes on anti-dumping to found out if the local industry has caused injury due to a surge in low-cost imports. They impose anti-dumping duties as a counter-measure, under the multi-lateral regime of World Trade Organisation (WTO).

These anti-dumping measures are taken for ensuring fair trade and for providing level-playing field to the local industry. These are not a move to limit imports or to cause an unjustified surge in prices of products.

Unlike safeguard duty that is imposed in a uniform way, the anti-dumping duty differs from country to country and company to company.