India has imposed anti-dumping duty of $787 per tonne on import of paracetamol, a widely used medicine, from China for five years to protect interest of domestic players from the cheap shipments.

“The anti-dumping duty imposed (on paracetamol) under this notification shall be effective for a period of five years...,” said the Central Board of Excise and Customs (CBEC) in the Revenue Department.

The duty will be at $787 per tonne, it said.

The duty has been slapped on recommendation of the Directorate General of Anti-dumping Duty, which carried out a review of the impact of the levy on its import from China.

The anti-dumping duty, a WTO compatible levy to discourage imports, was first imposed on the bulk drug in 2001 and extended through different stages till September 2013.

The DGAD after a ‘Sunset Review’ had concluded that despite the anti-dumping measures, dumping of paracetamol originating in or exported from China has continued unabated causing injury to the domestic industry.

“Should the present anti-dumping duties be revoked, dumping of the subject goods may in all likelihood intensify, causing further injury to the domestic industry,” the Authority had concluded while recommending to the revenue department continuation of the levy in August.

Paracetamol is a bulk pharmaceutical active ingredient, displaying analgesic and antipyretic properties. It is used in a number of OTC drug formulations in the form of powders, granules, injectibles and tablets.

The DGAD carried the review or probe for 15 months January, 2011 to 31st March, 2012.

Import of the drug increased from 6,385 tonne in 2008-09 to 10,834 tonne during the period of investigation (POI).

Capacity utilisation of the domestic industry was 85 per cent in 2008-09, but it has come down to 79 per cent in the POI. The annual demand for the drug is about 25,380 tonnes.

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