Indian Government Initiates Probe into Alleged Dumping of Chinese Chemical

The government of India has initiated a probe to ascertain the merits of imposing anti-dumping duty on imports of choline chloride, a chemical used mainly for animal feed, from China.

Countries initiate anti-dumping probes to check if domestic industry has been hurt because of a surge in cheap imports. As a counter-measure, they impose duties under the multilateral WTO regime.

The Directorate General of Anti-Dumping and Allied Duties (DGAD) initiated the probe into alleged dumping of choline chloride from China on the basis of an application from Jubilant Life Sciences on behalf of the domestic industry.

After finding evidence of dumping of the chemical by the neighbouring country, the DGAD "hereby initiates an investigation into the alleged dumping, and consequent injury to the domestic industry to determine the existence, degree and effect of alleged dumping and to recommend the amount of anti-dumping measure, which, if levied, would be adequate to remove the injury to the domestic industry," a notification by the Commerce Ministry said.

The DGAD is an investigative arm of the Commerce Ministry.

India has initiated 149 anti-dumping cases against China, which account for over half of such actions taken by the country against foreign nations.

Unlike safeguard duties, which are levied in a uniform way, anti-dumping duties vary from product-to-product and from country-to-country.