DGAD terminates anti-dumping probe into chemical from China

Commerce Ministry's investigation arm DGAD has said it is terminating its anti-dumping probe into import of a Chinese chemical used in dye industry.

The move comes following domestic industry's request to terminate the probe in the imports of 'Meta-Phenylene Diamene-4-Sulphonic Acid' from the neighbouring nation.

The probe was initiated by Directorate General of Anti-Dumping and Allied Duties (DGAD) on January 24 on complaints by domestic players including Chamunda Industries, Matrushakti Industries and Varahi Intermediates.

"In view of the request of the three petitioners and the provision in Rule 14(a) of the anti-dumping rules, the authority hereby terminates the present anti-dumping investigation concerning imports of 'Meta-Phenylene Diamene-4-Sulphonic Acid' originating in or exported from China," DGAD said in an order.

Domestic industry has cited various reasons for its request to terminate the probe.

They say their customers are not happy with them and are upset with their decision to seek anti-dumping duties and they do not wish to spoil relationship with their customers.

Besides, they say the entire process is quite time consuming.

DGAD however noted that the reasons cited by the domestic industry for termination of the petition appear to have little merit.

But it said Rule 14(a) of the anti-dumping rules does not grant any discretion to DGAD in the matter of termination of probe, once the domestic industry files a written request for termination of the investigation.

Anti-dumping duties are levied to provide a level playing field to local industry by guarding against cheap below-cost imports.

Increasing imports and dumping of goods from China have always been areas of concern for Indian companies.

India's exports to China were only USD 10.2 billion in 2016-17 but imports aggregated to USD 61.3 billion.

Imposition of anti-dumping duty is permissible under the World Trade Organisation (WTO) regime.

Both India and China are members of the Geneva-based body.