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DGAD terminating anti-dumping probe on chemical imported from China

23 May 2018 Evaluate

The Commerce Ministry’s investigation arm Directorate General of Anti- dumping and Allied Duties (DGAD) is terminating its anti-dumping probe on chemical imported from China that is used in dye industry. The move comes following domestic industry's request to terminate the probe in the imports of ‘Meta-Phenylene Diamene-4-Sulphonic Acid’ from the neighbouring nation. DGCA had initiated an investigation on January 24 on complaints by domestic players including Chamunda Industries, Matrushakti Industries and Varahi Intermediates.

DGAD has said that “In view of the request of the three petitioners and the provision in Rule 14(a) of the anti-dumping rules, the authority hereby terminates the present anti-dumping investigation concerning imports of ‘Meta-Phenylene Diamene-4-Sulphonic Acid’ originating in or exported from China”. It also said that domestic industry has cited various reasons for its request to terminate the probe. However, it noted that the reasons cited by the domestic industry for termination of the petition appear to have little merit. But, it said that Rule 14(a) of the anti-dumping rules do not grant any discretion to the DGAD in the matter of termination of the investigation, once the domestic industry files a written request for termination of the probe.

Anti-dumping duties are levied to provide a level playing field to local industry by guarding against cheap below-cost imports. Increasing imports and dumping of goods from China have always been areas of concern for Indian companies. India's exports to China were only $10.2 billion in 2016-17 but imports aggregated to $61.3 billion. Imposition of anti-dumping duty is permissible under the World Trade Organisation (WTO) regime. 


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