Govt slaps anti-dumping duty on carbon black

The government has imposed anti-dumping duty of up to Rs 20 ($0.423) per kg on imports of carbon black used by the rubber industry to guard domestic players from cheap shipments from China, Australia, Thailand and Russia.

The duty ranges from $0.084 (about Rs 4) per kg to $0.423 (about Rs 20) per kg, Central Board of Customs and Excise (CBEC) said in a notification.

After reaching the conclusion, "the domestic industry has suffered material injury," Directorate General of Anti-dumping and Allied Duties (DGAD), the nodal agency under the Commerce Ministry, recommended this duty.

CBEC said China, Australia, Thailand and Russia have been exporting carbon black to India below their normal value. The anti-dumping duty would be effective for a period of five years, it said.

The government in the past has imposed anti-dumping duties on several products, including yarns, fabrics, colour picture tubes, some aluminium products and chemicals from various other markets.

Unlike safeguard duties, levied in a uniform way, anti-dumping duty varies from product to product and country to country.

The purpose of anti-dumping duties is to counteract trade distortions due to cheap imports and the consequential injury to the domestic industry.

It is not a measure to restrict imports or cause unjustified increase in cost of the products.