Govt probes chemical dumping by Chinese, UAE firms

India has initiated a probe into alleged dumping of hexamine chemical by Chinese and UAE firms in the market here on complaints by domestic players.
The Directorate General of Anti-Dumping and Allied Duties (DGAD), an arm of the Commerce Ministry, has begun the investigations into the matter.
Simalin Chemical Industries and Kanoria Chemicals & Industries had filed an application for probe against the below-cost exports by foreign makers of the chemical.
In a notification, DGAD said it found sufficient prima facie evidence of dumping of hexamine from China and UAE.
The authority said it "hereby initiates anti-dumping investigation into the alleged dumping of the (chemical) and consequent injury to the domestic industry..., to determine the existence, degree and effect of any alleged dumping and to recommend the amount of antidumping duty, which if levied, would be adequate to remove the injury to the domestic industry".

The period of investigation is from October 2012 to September 2013.

However, for the purpose of analysing injury, the data of previous three years of 2010-2011 and 2011-12 would also be considered, it said.
After the probe, DGAD, if needed, will recommend the duty and the Finance Ministry will impose it.
Countries initiate an anti-dumping probe to determine whether their domestic industries have been hurt because of surge in cheap imports of any product. As a counter measure, they impose duties under the multilateral regime of the WTO.
The duty is aimed at ensuring fair trading practices and creating a level-playing field for domestic producers vis-a- vis foreign producers and exporters resorting to dumping of goods at below-cost rates.