In order to protect the domestic industries from cheap in-bound shipments, the government is likely to impose anti-dumping duty of up to $118 per tonne on import of 'Hydrogen Peroxide' chemical used by various industries in applications like corrosion control, paper and pulp bleaching from six countries--Bangladesh, Taiwan, Korea, Indonesia, Pakistan and Thailand.
The directorate general of anti-dumping and allied duties (DGAD) in its final findings has recommended that the chemical was dumped in India which has impacted the domestic players. It has also recommended the duty in the range of $16.91 per tonne to $117.9 per tonne. While the DGAD recommends the duty, Finance Ministry imposes the same. The investigation was initiated on joint application for initiation of anti-dumping investigations by National Peroxide and Hindustan Organic Chemicals. The import of Hydrogen Peroxide has increased to 67,300 tonne during April 2014 to June 2015 from 17,464 tonne in 2011-12.
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 multi-lateral WTO regime. Anti-dumping measures are taken to ensure fair trade and provide a level-playing field to the domestic industry. They are not a measure to restrict imports or cause an unjustified increase in cost of products.