Govt imposes anti-dumping duty on N-Butyl Alcohol

The government today imposed an anti-dumping duty of up to USD 149 on imports of a chemical used in fermentation of sugar from five countries, including the European Union, Malaysia, Singapore and the US.
The Central Board of Excise and Customs (CBEC), in a notification, said Normal Butanol, or N-Butyl Alcohol, exported from the EU, Malaysia, Singapore, South Africa and the United States was found to be "below normal value, thus establishing dumping of the same".
The Directorate General of Anti-dumping and Allied Duties (DGAD) in its investigation into the import of N-Butyl Alcohol from the five nations had on February 19 stated that "the domestic industry continues to suffer material injury on account of dumped imports and it is necessary to recommend imposition of anti-dumping duty on imports of subject goods from the subject countries".

An anti-dumping duty of USD 46.27 per tonne was imposed on imports from the EU while the same from Singapore and South Africa was put at USD 35.66 and USD 13.24, respectively.
For N-Butyl Alcohol imports from the US, the government went for an anti-dumping duty of USD 24.16.
Exports of the same by Petronas Chemicals Marketing from Malaysia will attract anti-dumping duty of USD 51.42 and the same by BASF Petronas USD 26.59. Any other exports originating from Malaysia will face USD 149.31 anti-dumping duty.

"The anti-dumping duty imposed under this notification shall be effective for five years," CBEC said.

Imports of the chemical from the five countries have risen to 53.195 tonnes in 2013-14 from 19,297 tonnes in 2010-11.
Countries the world over impose anti-dumping duties under the multilateral regime of WTO when these see goods being dumped in their territories causing injury to the domestic industry.
India has already imposed an anti-dumping duty on several products to tackle cheap imports from countries, including China.
N-Butanol is a product of the fermentation of sugar and other carbohydrates and is present in many foods and beverages. It is also a permitted artificial flavorant in the United States, used in butter, cream, fruit, rum, whiskey, ice cream and ices, candy, baked goods and cordials. It is also used in a wide range of consumer products.