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India initiates anti-dumping probe into import of a chemical from China, Japan

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India has initiated an anti-dumping probe into the import of a chemical used in the rubber industry from China and Japan following a complaint by a domestic player. The commerce ministry’s investigation arm Directorate General of Trade Remedies (DGTR) is probing the alleged dumping of ‘Insoluble Sulphur’.

Oriental Carbon & Chemicals Ltd has filed an application before the authority to undertake a probe into the alleged dumping of the chemicals coming from these two countries.

According to the DGTR’s notification, the applicant has provided prima facie evidence with respect to the injury suffered by the domestic industry due to the dumped imports.

“The authority hereby initiates an anti-dumping investigation into the alleged dumping and consequent material injury to the domestic industry,” it said.

If it is established that the dumping has caused material injury to domestic players, the DGTR would recommend the imposition of anti-dumping duty on imports.

The finance ministry takes the final decision to impose duties. Anti-dumping probes are conducted by countries to determine whether domestic industries have been hurt because of a surge in cheap imports. As a countermeasure, they impose these duties under the multilateral regime of the Geneva-based World Trade Organization (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.

India, China and Japan are members of the WTO, which is a 166-member multi-lateral trade body.

India has already imposed anti-dumping duty on several products to tackle cheap imports from various countries, including China.

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