The government has imposed anti-dumping duty for five years on import of Chinese chemical used in photography and manufacturing of dyes to guard domestic players from cheap imports from the neighbouring country. It is for the second time in a row that anti-dumping duty has been imposed on the import of the chemical from China. The duty was to expire in March 2019.
According to a notification of the Central Board of Indirect Taxes and Customs (CBIC), the anti-dumping duty on Meta Phenylenediamine (MPDA) imported from China will be in the range $573.92-$1,015.44 a tonne. The levy has been imposed after the Directorate General of Trade Remedies (DGTR), the investigation arm of the commerce ministry, made a recommendation for the same. DGTR was earlier known as the Directorate General of Anti-dumping and Allied Duties (DGAD). On the recommendation of DGAD, a definitive anti-dumping duty was imposed on the chemical in March 2014. Later, Aarti Industries filed an application before DGAD for review and continuation of the duty on the chemical.
Countries carry out the anti-dumping probe to determine whether the domestic industries have been hurt because of a surge in cheap imports. As a counter measure, they impose duties under the multilateral regime of the World Trade Organization. The duty is aimed at ensuring fair trading practices and creating a level-playing field for domestic producers with regard to foreign producers and exporters.
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