The commerce ministry’s arm DGTR has initiated an anti-dumping probe into the import of polyethylene from Kuwait, Malaysia, Oman, Qatar, Saudi Arabia, the UAE following a complaint by Chemicals and Petrochemicals Association of India.
The applicant has alleged that the industry is impacted due to the dumped imports of Linear-Density Polyethylene (LLDPE).
It is primarily used in raw materials for the plastic processing industry to make a variety of products such as packaging films, profiles, wire and cable.
According to the DGTR’s notification, the applicant has provided evidence with respect to the injury suffered by the domestic industry due to the dumped imports.
“The authority hereby initiates an anti-dumping investigation to determine the existence, degree and effect of the dumping,” it said.
If it is established that the dumping has caused material injury to domestic players, the DGTR would recommend the imposition of the levy on imports.
The finance ministry takes the final decision to impose duties.
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 the 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 and these countries are members of the WTO.
India has already imposed anti-dumping duties on several products to tackle cheap imports from various countries, including China.