Chinese chemical imports to face anti-dumping duty? Commerce Ministry to decide soon

Commerce Ministry's investigation arm Directorate General of Trade Remedies (DGTR) has recommended 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.

"Having initiated and conducted the investigation into dumping, injury and causal link in terms of the provisions laid down under the Rules and having established positive dumping margin as well as material injury to the domestic industry caused by such dumped imports, the Authority is of the view that imposition of definitive anti-dumping duty is required to offset dumping and injury," DGTR said on Tuesday.

A couple of weeks back, DGTR had recommended duty of up to $200.66 per tonne after conducting a probe on alleged dumping of 'Polyethylene Terephthalate' (PET resin) by Chinese companies. Dhunseri Petrochem Industries and Reliance Industries had then filed an application for initiation of the anti-dumping investigations.

In international trade parlance, dumping happens when a country or a firm exports an item at a price lower than the price of that product in its domestic market. Dumping impacts the price of that product in the importing country, hitting margins and profits of domestic manufacturing firms.

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. The duty is imposed only after a thorough investigation by a quasi-judicial body, such as DGTR in India.