The anti-dumping duty on a chemical imported from China and used by the dye industry will continue to remain in force till January 2019, though at modified rates.
The Directorate of Anti-Dumping and Allied Duties (DGAD) had carried out a Mid-term Review (MTR) of the duties imposed on the imports of '4,4Diamino Stilbene2,2 Disulphonic Acid' (DASDA) and recommended continuation of the levy at modified rates.
Acting on the recommendation, the revenue department has issued a notification specifying new rates (USD 99-477 per tonne) on the chemical, which is used in synthesis of dye stuff like optical brightening agents, fluorescent and brightening agents.
In January 2014, the department had imposed anti-dumping duty on the chemical ranging between USD 270 and USD 460 for five years.
Later, the Dyestuffs Manufactures Association of India, a representative body of importers/users of the chemical, had approached DGAD requesting initiation of a review of the anti-dumping duties.
They have claimed that the circumstances have changed significantly leading to a situation where the existing anti-dumping duties are no longer warranted.
DGAD, in October, 2015, had initiated the MTR and recommended that anti-dumping duty should continue at modified rates on the imports.
It noted that dumping and injury may intensify in absence of the anti-dumping duty, considering the high production capacity of China and its penchant for export oriented production and demand in India.
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