In a move aimed at protecting domestic manufacturers, India has started an anti-dumping investigation into imports of a chemical ‘Resorcinol’ widely used in tyre and rubber products that are being imported from China and Japan, following a complaint filed by Atul Ltd with the Directorate General of Trade Remedies (DGTR). The applicant has claimed that the influx of cheap Resorcinol imports is causing substantial injury to domestic manufacturers.
In the probe, the DGTR would determine the existence, degree and effect of the alleged dumping of the chemical exported from China and Japan. If it is established that the dumping has caused material injury to domestic players, the DGTR would recommend the imposition of the levy on imports. The finance ministry takes the final decision to impose these duties.
The product is primarily used as an intermediate in the manufacture of tyre and rubber products and in resin bonding applications. It is also used in the manufacture of specialised wood adhesive resins, dyes, pharmaceuticals, and cosmetic preparations.