The government has imposed an anti-dumping duty of up to $ 60.35 per tonne on imports of a chemical used in fertiliser industry from four countries -- Russia, Indonesia, Georgia and Iran. The move is aimed at protecting domestic players against cheap imports of ‘ammonium nitrate’ from these countries. This anti-dumping duty is in the range of $11.42 - $60.35 per tonne of the chemical and will remain in place for five years.
Deepak Fertilizers and Petrochemicals Corporation and Smartchem Technologies had jointly filed an application before the Directorate General of Antidumping and Allied Duties (DGAD) for initiating the anti-dumping probe. The finance ministry imposed the duty after the DGAD in its finding concluded that the chemical has been exported to India below its normal value, resulting in dumping. After considering the findings of DGAD, the government, hereby imposes the antidumping duty. DGAD has recommended imposition of the duty on the imports.
Countries impose anti-dumping duties to guard domestic industry from surge in below-cost imports. As a counter-measure, they impose the duty. These duties are in compliance with the rules of global trade body World Trade Organisation (WTO). The duties also ensure fair trade by providing a level- playing field to the domestic industry. They are not a measure to restrict imports or cause an unjustified increase in the cost of products.