India Starts Chemical Dumping Probe from China, EU and the U.S.

The Government has initiated a probe into alleged dumping of morpholine -- a chemical used in crop protection and rubber industry -- by exporters from the EU, US and China in the Indian markets.

The Directorate General of Anti-Dumping and Allied Duties in the Ministry of Commerce and Industries started the investigations on a complaint by Maharashtra-based Balaji Amines Ltd.

The DGAD said it has "sufficient evidence" of dumping of the chemical from the EU, US and China.

"The Authority (DGAD) hereby initiates an investigation into the alleged dumping, and consequent injury to the domestic industry...," it said.

Morpholine is an extremely versatile chemical and is used by rubber industry and drugs industries. It is also used in crop protection agents, dyes and optical brighteners. Besides, it is also an important chemical for the toiletry and cosmetic products manufactures.

The probe would look into the imports between July 2009 and June 2010.

On the recommendation of the DGAD, the Revenue Department imposes anti-dumping duty.

India has slapped the restrictive duty on several items such as yarn, fabrics, certain stainless steel products, auto parts and chemicals imported from various countries.

A country initiates anti-dumping probe to see whether its domestic industry has been hurt due to a surge in below-cost imports. As a counter-measure, it imposes duties under the multilateral regime of the WTO.

Such duties ensure fair trading practices and create level-playing field for domestic producers vis-a-vis foreign players resorting to dumping.