Govt may extend anti-dumping duty on Chinese melamine

Anti-dumping duty of $331.10 per tonnes on the imports of the product from China has been recommended

Government may further extend anti-dumping duty on melamine imports from China to protect domestic industry from cheap inbound shipments of the substance used in beauty and utility products.

In the final findings of the second sunset review, the Directorate General of Anti-dumping and Allied Duties (DGAD), has said that there is "continued dumping" of the chemical product from China which is causing injury to the domestic industry.

"The authority (DGAD) is of the view that the anti-dumping measure is required to be extended," the Commerce Ministry has said.

It has recommended an anti-dumping duty of $331.10 per tonnes on the imports of the product from China.

While DGAD, which is under the Commerce Ministry, recommends the duty and the Finance Ministry imposes it within three months of the recommendation.

India had imposed the restrictive duty on melamine for the first time in November 2004. In 2008, DGAD initiated the sunset review in the matter of continuation of anti-dumping duty on imports and in 2010 the duty was imposed.

Further, after the complaint of the domestic industry, the authority initiated the second sunset review investigation in December 2014 to review the need for continued imposition of the duties.

Melamine imports from China have increased from 17,580 tonnes in 2010-11 to 30,780 tonnes during April 2013 to June 2014.

Countries initiate anti-dumping probes to check if their domestic industries have been hurt because of a surge in below-cost imports. As a counter measure, they impose duties within the multilateral regime of the WTO.

Anti-dumping measures are taken to ensure fair trade and provide a level playing field to domestic industry. It is not a measure to restrict imports or cause an unjustified increase in the cost of products.