Amid increasing scrutiny of Chinese exports to India, the government has started a probe into alleged dumping of a chemical that's used in pharmaceutical and agrochemical industries. The commerce ministry's investigation wing registered the inquiry after a complaint by a domestic manufacturer, Cabot Sanmar Ltd. The probe wing will investigate the charges of dumping of 'untreated Fumed Silica' by Chinese and South Korean manufacturers.
Cabot has said that the massive dumping of this chemical from China and South Korea has caused huge losses to the domestic industry. On prima facie evidence put forward by the ministry, its probe wing Directorate General of Trade Remedies (DGTR) has initiated investigations into the matter. The DGTR will now validate the allegations and based on findings it will suggest anti-dumping duty on the product. Thereafter, the finance ministry will finally impose the anti-dumping duty on the product.
Anti-dumping duty is charged on a product when a country exports it lower than the price it's sold in the domestic market, which affects the local industry. According to global trade norms, a country is allowed to impose tariffs on such dumped products to provide a level-playing field to domestic manufacturers.
This is not the first instance when Chinese exporter is being probed for dumping products in India. Last month, the DGTR had recommended the anti-dumping duty for 5 years on Choline Chloride imports from China, Malaysia and Vietnam, following complaints by domestic manufacturers. Jubilant Life Sciences had approached the directorate on the issue of Choline Chloride imports from these countries.
A couple of months back, the DGTR had recommended a duty of up to $200.66 per tonne after conducting a probe into the alleged dumping of 'Polyethylene Terephthalate' (PET resin) by Chinese companies. Dhunseri Petrochem Industries and Reliance Industries had then filed a complaint.
With PTI inputs