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Govt initiates countervailing duty probe into increased imports of Vietnamese chemical

31 Dec 2024 Evaluate

With an aim to  guard domestic manufacturers from the increase in imports that are subsidised by Vietnam, the government has initiated a countervailing duty probe into increased imports of a chemical - Calcium Carbonate Filler Masterbatch - used in the plastic industry, from Vietnam following a complaint from domestic players. 

The investigation has been initiated by the Directorate General of Trade Remedies (DGTR), an arm of the Commerce Ministry. Compounds and Masterbatch Manufacturers Association of India and Masterbatch Manufacturers Association have filed a petition before the directorate on behalf of the domestic industry for initiation of the probe on the chemical exported from Vietnam into India.

The DGTR in a notification has said that the applicants have alleged that the product is being imported into India from Vietnam at subsidized prices in significant quantities for a prolonged period, causing material injury to it. They have requested for imposition of countervailing duty on these imports.

In the investigations, the DGTR would determine the degree and effect of any alleged subsidization in respect of the product and to recommend the amount of duty, which if levied, would be adequate to remove the injury to the domestic industry. Countervailing duty is a country-specific duty, which is imposed to safeguard domestic industry against unfair trade subsidies provided by the local governments of the exporting nations.


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