India may extend anti-dumping duty on carbon black used in rubber industry

India may extend anti-dumping duty on imports of carbon black, used in rubber and tyre industry, from China and Russia as the domestic industry has approached the commerce ministry to investigate the matter.

Following the complaint, the Directorate General of Trade Remedies has initiated the probe to examine whether the expiry of existing anti-dumping duty on 'carbon black used in rubber applications' is likely to lead to continuation or recurrence of dumping of the product from these two countries and impact to the domestic industry.

Carbon Black Manufacturers Association, on behalf of domestic producers - Phillips Carbon Balck, Himadri Speciality Chemicals, Continental Carbon India and Birla Carbon India - has filed an application before the DGTR, under the commerce ministry, for continuation of the duty on the product from these two nations.

On the basis of the prima facie evidence submitted by the industry, the DGTR "hereby initiates a sunset review investigation to review the need for continued imposition of the duties," the directorate said in a notification.

The current duty is valid up to November 17 this year.The product is used in production/processing of rubber, including tyres.

In international trade parlance, dumping happens when a country or a firm exports an item at a price lower than the price of that product in its domestic market.

Dumping impacts price of that product in the importing country, hitting margins and profits of manufacturing firms.

According to global trade norms, a country is allowed to impose tariffs on such dumped products to provide a level-playing field to domestic manufacturers. The duty is imposed only after a thorough investigation by a quasi-judicial body, such as DGTR, in India.

Imposition of anti-dumping duty is permissible under the World Trade Organisation (WTO) regime. India and China are members of this Geneva-based organisation, which deals with global trade norms.

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.