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Dumping duty to continue on rubber chemicals from EU, China

17 May 2011 Evaluate

The Designated Authority in the Commerce Ministry has proposed continuation of the definitive anti-dumping duty on imports of certain rubber chemicals from the European Union and China, even as the extant dumping duty on the subject goods expired on May 11. The Authority clarified that the product under review relates to certain rubber chemicals namely ‘PX13' from the EU and Chinese Taipei, ‘MOR' from China and ‘TDQ' from the EU and Chinese Taipei. These rubber chemicals are extensively used in treating natural rubber, synthetic rubber (SBR, Butadiene rubber, nitrile rubber, carboxylated rubber) and other synthetic rubber based compounds used for manufacture of various rubber products.

In the case of the producer-exporter of rubber chemical ‘PX13' Solutia Inc from the EU would have to shell out a definitive anti-dumping duty of $810 a tonne, any other producer or exporter from the EU would have to pay $928 a tonne for export of the subject goods to India. In the case of rubber chemical ‘MOR' while producers/exporters from China would have to pay a definitive anti-dumping duty of $770 a tonne, producers/exporters from the EU would have to fork out a definitive anti-dumping duty of $262 a tonne.

In its final findings in the sunset review, the Authority said despite the existence of the anti-dumping duty, the imports of ‘PX13' increased marginally over the injury period. More importantly, these imports are at dumped prices and they are undercutting and underselling the prices of the subject goods of the domestic industry. Hence it feared that the cessation of the anti-dumping duty is likely to lead to the persistence of dumping and consequent injury to the indigenous industry.

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