India imposes anti-dumping duty on 5 Chinese goods for 5 years

Aim to to guard local manufacturers from cheap imports

December 27, 2021 03:07 am | Updated 11:50 am IST - New Delhi

An employee works on solar photovoltaic modules at a factory in Haian in China's eastern Jiangsu province on November 15, 2021. (Photo by AFP) / China OUT

An employee works on solar photovoltaic modules at a factory in Haian in China's eastern Jiangsu province on November 15, 2021. (Photo by AFP) / China OUT

India has imposed anti-dumping duty on five Chinese products, including certain aluminium goods and some chemicals, for five years to guard local manufacturers from cheap imports from the neighbouring country.

According to separate notifications of the Central Board of Indirect Taxes and Customs (CBIC), the duties have been imposed on certain flat rolled products of aluminium; sodium hydrosulphite (used in dye industry); silicone sealant (used in manufacturing of solar photovoltaic modules, and thermal power applications); hydrofluorocarbon (HFC) component R-32; and hydrofluorocarbon blends (both have uses in refrigeration industry).

These duties were imposed following recommendations of the Commerce Ministry’s investigation arm, the Directorate General of Trade Remedies (DGTR).

The DGTR, in separate probes, has concluded that these products have been exported at a price below normal value in Indian markets, which has resulted in dumping.

The domestic industry has suffered material injury due to the dumping, the DGTR has said.

“The anti-dumping duty imposed under this notification [on Silicone Sealant] shall be levied for a period of five years [unless revoked, superseded or amended earlier] from the date of publication of this notification in the official gazette and shall be payable in Indian currency,” the CBIC has said.

The CBIC has also imposed the duty on a vehicle component — Axle for Trailers in CKD/SKD (complete and semi knocked down) to protect domestic makers from cheap Chinese imports.

Similarly it has also slapped the duty on imports of calcined gypsum powder from Iran, Oman, Saudi Arabia and the United Arab Emirates for five years.

While the DGTR recommends the duty to be levied, the Finance Ministry imposes it.

Countries initiate anti-dumping probes to determine if the domestic industry has been hurt by a surge in below-cost imports. As a counter-measure, they impose duties under the multilateral WTO regime.

Level playing field

Anti-dumping measures are taken to ensure fair trade and provide a level playing field to the domestic industry. Both India and China are members of the Geneva-based World Trade Organisation (WTO).

India has initiated maximum anti-dumping cases against dumped imports from China.

India’s exports to China during the April-September 2021 period were worth $12.26 billion while imports aggregated at $42.33 billion, leaving a trade deficit of $30.07 billion.

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