Govt plans anti-dumping duty on Chinese chemical used in soaps

India is considering to impose anti-dumping duty on the import of a chemical used in manufacturing soaps, detergents and cosmetics to protect the domestic industry from cheap Chinese shipments.

"The provisional anti-dumping duty to be imposed on Coumarin (the chemical) would be $14.02 per kg," a commerce ministry official said.

The Directorate General of Anti-dumping and Allied Duties (DGAD) in its preliminary findings has suggested the Commerce Ministry to impose the duty on Coumarin to check the damage done to the domestic industry, the official said.

However, the imposition of the anti-dumping duty is notified by the finance ministry.

Acting on complaints from the domestic industry, DGAD, the nodal investigating agency, had initiated the probe into dumping of the Coumarin from China.

In its recommendations, DGAD has said that the products have been exported to India below its normal value from China.

"The domestic industry has suffered material injury," DGAD said, adding that the damage has been caused by these imports from China.

China had exported about 150 tonnes of the chemical in 2005-06, which went up to 204 tonnes in 2007-08. India's total import of the chemical in 2007-08 stood at 219.5 tonnes.

Countries initiate anti-dumping probe to see whether their domestic industries have been hurt because of surge in cheap imports. As a counter measure, they impose duties within the multilateral regime of the WTO.