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India may impose anti-dumping duty on imports of ‘O Acid’ from China

29 May 2017 Evaluate

In order to protect domestic manufacturers from cheap Chinese imports of chemicals, India may impose anti-dumping duty of up to $8.79 per kg mainly used in pharma industry.  The Directorate General of Antidumping and Allied Duties (DGAD), in its preliminary findings, concluded that the chemical was exported by firms in China at prices less than their normal values in India and due to which the domestic industry has been materially retarded. The DGAD recommended imposition of provisional anti- dumping duty so as to remove the injury to the domestic industry. The suggested duty ranges between $0.03 per kg to $8.79 per kg on the imports. The DGAD in its notification also stated that imports of the acid increased to 583 tonnes in 2015-16 from 427 tonnes in 2013-14.

The O Acid or Ofloxacin Acid chemical is mainly used in pharma industry.  It is an intermediate chemical for manufacture of Ofloxacin, which is a synthetic chemotherapeutic antibiotic of the fluoroquinolone drug class considered to be a second-generation fluoroquinolone, generally used to treat a variety of illnesses including bronchitis, pneumonia, and infections of the skin, bladder, urinary tract, reproductive organs, and prostate, as well as used in the making of generic drug equivalents for oral and intravenous administration. This drug is labelled on the WHO Model List of Essential Medicines as the most important medications needed in the basic health system.

Countries initiate anti-dumping probe to determine if the domestic industry has been hurt by flooding of below-cost imports. As a counter-measure, they come up with duties under the multi-lateral WTO regime. Anti-dumping steps are taken to ensure fair trade and provide a level-playing field to the domestic industry. They are not a measure to restrict import or cause an unjustified increase in cost of products.

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