India imposes anti-dumping duty on 5 Chinese goods for 5 years

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India imposes anti-dumping duty on 5 Chinese goods for 5 years

  • India has imposed anti-dumping duty on five Chinese products, including certain aluminium goods and some chemicals, for five years to guard local manufacturers from cheap imports from the neighbouring country.
  • The duties have been imposed on certain flat rolled products of aluminium; sodium hydrosulphite (used in dye industry); silicone sealant (used in manufacturing of solar photovoltaic modules, and thermal power applications); hydrofluorocarbon (HFC) component R-32; and hydrofluorocarbon blends (both have uses in refrigeration industry).
  • These duties were imposed following recommendations of the Commerce Ministry’s investigation arm, the Directorate General of Trade Remedies (DGTR).
  • The DGTR, in separate probes, has concluded that these products have been exported at a price below normal value in Indian markets, which has resulted in dumping.
  • The domestic industry has suffered material injury due to the dumping, the DGTR has said.
  • The CBIC has also imposed the duty on a vehicle component — Axle for Trailers in CKD/SKD (complete and semi knocked down) to protect domestic makers from cheap Chinese imports.
  • Similarly it has also slapped the duty on imports of calcined gypsum powder from Iran, Oman, Saudi Arabia and the United Arab Emirates for five years.

Why anti dumping measure is used?

  • Anti-dumping measures are taken to ensure fair trade and provide a level playing field to the domestic industry.
  • Countries initiate anti-dumping probes to determine if the domestic industry has been hurt by a surge in below-cost imports. As a counter-measure, they impose duties under the multilateral WTO regime.
  • India has initiated maximum anti-dumping cases against dumped imports from China.

Directorate General of Trade Remedies (DGTR)

  • It was established in 1998 as the Directorate General of Anti-Dumping & Allied Duties, it was renamed in 2018 as the Directorate General of Trade Remedies (DGTR).
  • DGTR works alongside the Department of Commerce under the Ministry of Commerce and Industry.
  • The Directorate General of Anti-dumping and Allied Duties (DGAD), Directorate General of Safeguards (DGS), and DGFT dealing with quantitative restriction (QR) safeguards; these functions of DGFT were merged into one single entity, DGTR, making it an integrated single umbrella National Authority.
  • It is an apex national authority responsible for administering all the trade remedial measures which include:
  1. Anti-Dumping Duties
  2. Countervailing Duties and
  3. Other Safeguard Measures.