India has initiated a probe into the alleged dumping of PVC paste resin, used to make artificial leather and other technical textiles’ products, from the European Union (EU) and Japan, according to a notification.
The commerce ministry’s investigation arm, Directorate General of Trade Remedies (DGTR), is probing the dumping as imports are allegedly hurting the margins of the domestic industry.
Chemplast Sanmar Ltd has filed an application seeking the imposition of anti-dumping duty, stating that the cheap imports are causing material injury to the domestic industry.
“On the basis of the duly substantiated written application submitted by the domestic industry and having reached satisfaction based on the prima facie evidence submitted by domestic industry about the dumping of subject goods…the Authority, hereby, initiates an anti-dumping investigation,” the DGTR has said in a notification.
If it is established that the dumping has caused material injury to domestic players, the DGTR would recommend the imposition of anti-dumping duty on these 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 Organisation (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.
Last month, the DGTR recommended the imposition of an anti-dumping duty of up to USD 707 per tonne on imports of PVC paste resin from six countries, including China, for five years, with an aim to guard domestic producers.
