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DGTR recommends imposition of anti-dumping duty on imports of cutting tool from China

10 Aug 2022 Evaluate

The commerce ministry's arm the Directorate General of Trade Remedies (DGTR) has recommended imposition of anti-dumping duty on imports of a kind of cutting tool from China, for five years, to protect the domestic industry from cheap inbound shipments. The DGTR has recommended the duty after conducting an investigation on the dumped imports of 'resin bonded thin wheels’. It is used in various sectors ranging from welding and cutting.

The directorate in its findings has concluded the item is being imported from China into India in significant quantities in both absolute and relative terms. The imports are undercutting the prices of the domestic industry. The recommended duty was in the range of $78.38 per tonne and $90.12 per tonne on imports. While DGTR, which is under the commerce ministry, recommends the duty, the finance ministry takes the final decision to impose the same within three months of the recommendation.

Countries initiate anti-dumping probes to check if their domestic industries have been hurt because of a surge in below-cost imports. As a countermeasure, they impose duties within the multilateral regime of the WTO (World Trade Organisation). Anti-dumping measures are taken to ensure fair trade and provide a level-playing field to the domestic industry. It is not a measure to restrict imports or cause an unjustified increase in the cost of products.

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