New Delhi: The government is likely to impose anti-dumping duty of up to USD 211 per tonne on a chemical used in textiles and pharma industry, imported from China and Turkey for a period of five years.
Imposition of the duty on ‘Dimethylacetamide’ would provide level-playing field to the domestic industry and also guard them from cheap imports.
Following complaints from domestic companies, the Directorate General of Anti-dumping and Allied Duties (DGAD), under the commerce ministry, investigated the matter.
In its final findings of the probe, the directorate has concluded that the product has been exported to India from these two countries below normal values, and due to this the domestic industry has suffered material injury.
“The authority recommends imposition of definitive anti-dumping duty…so as to remove the injury to the domestic industry,” the DGAD said in a notification.
DGAD has recommended the duty in the range of USD 48 per tonne and USD 211 per tonne. The finance ministry takes the final call on the imposition of the duty.
Rashtriya Chemicals and Fertilizers Ltd and Balaji Amines Ltd had filed the application for initiation of the anti-dumping investigations.
Countries carry out anti-dumping probe to determine whether their domestic industries have been hurt because of a surge in cheap imports.
As a counter measure, they impose duties under the multilateral regime of WTO.
The duty is also aimed at ensuring fair trading practices and creating a level-playing field for domestic producers with regard to foreign producers and exporters.
India has already imposed anti-dumping duty on several products to check cheap imports from countries including China, with which India has a major concern of widening trade deficit.
The deficit with China stood at USD 36.73 billion during April-October this fiscal.
The country has imposed the duty on as many as 98 products, as on December 27 last year, imported from China.