Anti-dumping duty on drilling pipes from China

India is likely to impose anti-dumping duty on import of certain types of iron and steel pipes from China used in drilling for oil and gas exploration to protect domestic manufacturers.

The Directorate General of Anti-Dumping and Allied Duties (DGAD) has recommended to the revenue department to impose provisional levy, ranging between $961.33 and $1,610.67 per tonne.

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ISMT Ltd and Maharashtra Seamless had moved the DGAD for imposition of the duty on “seamless tubes, pipes and hollow profiles of iron, alloy or non-alloy steel (other than cast iron and stainless steel), whether hot finished or cold drawn or cold rolled of an external diameter not exceeding 355.6 mm.”

They had alleged dumping of the products, originating in or exported from China, and consequent injury to them.

In its preliminary findings, the DGAD said it was of the view that imposition of "provisional duty is required" to offset dumping and injury, pending completion of the investigation.

“Therefore, the Authority considers it necessary and recommends imposition of provisional anti-dumping duty on imports of subject goods from the subject country,” it said in a notification.

In July last year, the DGAD had initiated a probe into the alleged dumping, and injury to the domestic industry.

The product being considered by the DGAD includes boiler pipes or line pipes used in hydrocarbon industry and casing and tubing of a kind used in drilling for oil and gas exploration.

The purpose of anti-dumping duties, in general, is to eliminate injury caused to the domestic industry by the unfair trade practices of dumping so as to re-establish a situation of open and fair competition in the market, which is in the general interest of the country.

Imposition of the duties might affect price levels of the downstream products and consequently might have some influence on relative competitiveness of these products.