India Likely to Imposes Anti-dumping Duty on Imports of A Chemical from EU

India is likely to impose anti-dumping duty of up to USD 490 per MT on imports of a chemical, mainly used in pharmaceutical and plastic industry, from European Union to protect domestic players from cheap shipments.

In final findings, the Directorate General of Anti-dumping and Allied Duties (DGAD) has concluded that the domestic industry has "suffered material injury" due to the "dumped imports" of 'Pentaerythritol' from European Union (excluding Sweden).

The restrictive duty recommended by the DGAD will vary from USD 379 per MT to USD 490 per MT, the commerce ministry has said in a notification.

The DGAD has also concluded that the product has been exported to India below its normal value, thus, resulting in dumping of the chemical, it said.

It said the imports from EU (excluding Sweden) have increased significantly during the period of investigation (April 2009-June 2010).

Imports of the chemical have increased to 6.935 MT during April 2009 and June 2010 from 256 MT in 2006-07, it said.

The product is also used in the manufacture of printing inks, synthetic rubber, drying oils, detonators, explosives, and synthetic lubricants.

The DGAD is a nodal investigation agency under the Commerce Ministry. However, a final call on imposition of the duty will be taken by the Finance Ministry.

The DGAD had initiated the probe on the complaint of Kanoria Chemicals & Industries on the behalf of domestic industry alleging dumping of Pentaerythritol originating in or exported from EU (excluding Sweden).

Unlike safeguard duties, which are levied in a uniform manner, anti-dumping duty varies from product to product and country to country.

Countries initiate anti-dumping probes to check if their domestic industries have been hurt because of a surge in cheap, or below-normal-cost, imports.

As a counter-measure, they impose duties, as provided for under the multilateral regime of the WTO.

Anti-dumping measures are taken to ensure fair trade and provide a level-playing field to domestic players. It is not a measure to restrict imports or cause an unjustified increase in the cost of products.