Govt may impose anti-dumping duty for five years on Chinese chemical

The government may impose anti-dumping duty for five years on a Chinese chemical used in dye and photography industry in order to guard domestic players from cheap imports from the neighbouring country.

Imposition of the duty on 'Meta Phenylene Diamine' was recommended by the commerce ministry's investigation arm - Directorate General of Trade Remedies (DGTR) after conducting a probe in this regard.

In its probe, the directorate has concluded that there has been continued dumping of the chemical from China and it is likely to continue and increase if the current duty is allowed to cease.

"The authority recommends imposition of anti-dumping duty...so as to remove the injury to the domestic industry," the DGTR has said in a notification.

The recommended duty ranges between $1,015.44 per tonne and $573.92 per tonne. The decision to finally impose the duty will be taken by the finance ministry.

Aarti Industries Ltd had filed an application before the DGTR alleging continuation of dumping of this chemical from China. It has asked for review and continuation of the anti-dumping duties on the imports.

In March 2013, the government had imposed duty of $0.78 per kg on the imports of this chemical from China for five years.

Countries carry out anti-dumping probe to determine whether their domestic industries have been hurt because of a surge in below-cost imports.

As a counter measure, they impose duties under the multilateral regime of WTO.

The duty is also aimed at ensuring fair trading practises 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 has increased to $63.12 billion in 2017-18 from $51.11 billion in the previous fiscal.