India has started a probe into an alleged dumping of a chemical used in vital industries such as drugs, pharmaceuticals, dyes and dye intermediates from China following a complaint from a domestic player. Gujarat Narmada Valley Fertilizers and Chemicals has filed an application before the Directorate General of Trade Remedies (DGTR) for anti-dumping investigation on imports of Aniline originating in or exported from China.
The DGTR, under the Commerce Ministry, has found evidence of dumping of the chemical from China. The authority, hereby, initiates an investigation to determine the existence, degree and effect of any alleged dumping in respect of the product under consideration. If it is established in the probe that dumping of the chemical is denting margins of domestic firms, the DGTR would recommend anti-dumping duty with a view to guard local industry from cheap imports.
Imposition of anti-dumping duty is permissible under the World Trade Organisation (WTO) regime. The duty is aimed at ensuring fair trading practices and creating a level-playing field for domestic producers vis-a- vis foreign producers and exporters.
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