To protect domestic companies from low-cost imports from China, Korea, and Thailand, India has levied an anti-dumping tax of up to $557 per tonne on a chemical used primarily in the adhesive sector from these countries for a period of five years.
Because the chemical, epichlorohydrin, was being shipped to India from these nations at lower-than-normal costs, the tariff was levied.
“The anti-dumping duty imposed under this notification shall be levied for a period of five years (unless revoked, superseded or amended earlier)…,” the department of revenue said in a notification.
The levy is imposed following recommendations for the same by the commerce ministry’s investigation arm Directorate General of Trade Remedies (DGTR).
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 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 has already imposed anti-dumping duty on several products to tackle cheap imports from various countries, including China.
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Source: Business Standard
