DGTR for anti-dumping duty on chemical imported from Brazil, Indonesia, Thailand

Commerce ministry's Directorate General of Trade Remedies (DGTR) has recommended anti-dumping duty on a chemical used in paint and printing industries, imported from Brazil, Indonesia, and Thailand for a period of five years.

Imposition of the duty would help guard domestic players from cheap imports of 'non-plasticised industrial grade nitrocellulose damped in isopropyl alcohol having nitrogen content in the range of 10.7-12.2 per cent' from the three countries.

The recommended duty ranges between USD 0.235- 0.906 per kg. The finance ministry will take the final call to impose the duty.

In its findings, the directorate concluded that the product has been exported to India from these nations at below normal values, resulting in dumping of the chemical and hence causing material injury to the domestic industry.

"The anti-dumping duty...is recommended to be imposed on all imports of the subject goods originating in or exported from these countries...for a period of five years," DGTR said in a notification.

The product is used in the manufacture of auto refinish paints, leather finishing lacquers, nail varnishes, and printing inks.

DGTR initiated the probe in April 2018 following a complaint from Nitrex Chemicals India which alleged dumping of the product.

Countries carry out anti-dumping probe to determine whether 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.

The directorate (earlier known as Directorate General of Anti-dumping and Allied Duties) was constituted in May 2018 as an integrated single window agency for providing comprehensive and swift trade defence mechanism in India.

It now deals with anti-dumping, countervailing duties and safeguard measures. It also provides support to domestic industry and exporters in dealing with instances of trade remedy investigations instituted against them by other countries.