India may impose anti-dumping duty on imports of a certain type of rubber used in various industries, as the domestic industry has approached the commerce ministry to investigate the alleged dumping of the product from China, European Union, Japan and Russia.
Apcotex Industries Ltd has filed an application before the ministry’s Directorate General of Trade Remedies (DGTR) for imposition of anti-dumping duty on imports of ‘Acrylonitrile Butadiene Rubber’ from these countries.
The DGTR in a notification has said that on the basis of the prima facie evidence submitted by the domestic firm, “the authority, hereby, initiates an investigation to determine the existence, degree and effect of any alleged dumping” of the product from these nations and “to recommend the amount of anti-dumping duty, which if levied, would be adequate to remove the injury to the domestic industry”.
The product is used in the manufacture of various rubber articles where resistance to oil, abrasion and heat applications are involved, such as oil seals, hoses, automotive products, gaskets, rice dehusking rolls, printers, and fabrics.
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 price of that product in the importing country, hitting margins and profits of 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.
Imposition of anti-dumping duty is permissible under the World Trade Organization (WTO) regime.
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.