Dumping Duty On Synthetic Rubber Imports Contested

Mumbai-based Gujarat Apar Polymers has filed a petition against imports of synthetic rubber from Japan. A anti-dumping duty of Rs 19,306 per mt was levied on 14 November last year.

Importers argue the duty has been levied with non-application of mind. This case was heard in a high court on September 6 but was later adjourned.

The commerce ministry has initiated an anti-dumping investigation against imports of acrylonitrile butadiene rubber from Germany and Korea on a complaint from the same company.

Dumping occurs when the export price of goods imported into India is less than the price at which `like goods' are sold in the domestic market of the exporter. The price at which `like goods' are sold in the domestic market of the exporter is referred to as the `normal value'. Therefore, goods are dumped if the export price is less than their normal value.

 

Nitrile rubber is a synthetic rubber used in manufacturing of rubber articles like oil seals, hoses, automotive products, gaskets and printer fabrics.

The petitioner has allegedly filed the case on the basis of a letter from Bayer AG, Germany. It stated the domestic price of NBR in Germany is $2249 per mt.

While the local price in Korea is unavailable, the normal value on the basis of estimated cost of production works out to $1,979.

The weighted average c.i.f. export price of NBR to India comes to $1,133 per million tonne in 1994-95 (October 94-March 95) for Germany and $1,201 per million tonne for Korea.

The petitioner has claimed some adjustments in the c.i.f. export prices, like in expenditure incurred on ocean freight, insurance, special packaging for exports, to work out export price and normal value.