Anti-dumping duty likely on a chemical used by pharma industry

DGAD has recommended to the revenue department to impose the levy ranging between $122.14 and $ 279.78 per tonne on the imports of ‘Methylene Chloride’.

April 21, 2016 04:39 pm | Updated 04:39 pm IST - New Delhi

India is likely to impose anti-dumping duty of up to $279.78 per tonne on imports of a chemical used by pharma, agro and fragrance industries from China and Russia to protect domestic manufacturers.

Gujarat Fluorochemicals and Chemplast Sanmar had moved the Directorate General of Anti-Dumping and Allied Duties (DGAD) for imposition of the duty alleging dumping of the chemical from these two countries.

DGAD has recommended to the revenue department to impose the levy ranging between $122.14 and $ 279.78 per tonne on the imports of ‘Methylene Chloride’

“...having established positive dumping margins as well as material injury to the domestic industry caused by such dumped imports, the Authority (DGAD) is of the view that imposition of duty is required to offset dumping causing injury,” DGAD said in notification while recommending the levy.

In April last year, it had initiated a probe into the alleged dumping, and injury to the domestic industry.

The product is used in the manufacturing of rayon yarn, pharmaceuticals, agro and fragrance. It is also used as an extractant for edible fats, cocoa, butter and essences.

The purpose of anti-dumping duties is to eliminate injury caused to the domestic industry by unfair trade practices like dumping — pricing goods below their cost for export markets.

The step is intended to re-establish open and fair competition in the market.

Imposition of the duties might affect price levels of the downstream products and consequently might have some influence on relative competitiveness of these products.

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