India may extend the anti-dumping duty to jute sacking clothes from Bangladesh as the commerce ministry has found imports of the product to avoid duties on jute bags from the neighbouring country.
The commerce ministry's investigation arm Directorate General of Anti-Dumping and Allied Duties (DGAD) has initiated a probe into circumvention of anti-dumping duties on jute sacking bags from the neighbouring country.
The Indian Jute Mills Association (IJMA) has filed an application before the authority alleging that the duty on jute sacking bags is being circumvented by imports of jute sacking cloth, which is an unfinished and penultimate form of the bags, from Bangladesh.
The DGAD in a notification has said that it has found "sufficient prima facie evidence" of circumvention of the anti-dumping duties leviable on jute bags by the country.
It "hereby initiates an investigation into the alleged circumvention of the anti-dumping duties...to determine the existence, degree and effect of the alleged circumvention and to examine the need to extend the existing anti-dumping duty to the circumventing product," the DGAD said.
The finance ministry in January 2017 imposed the anti-dumping duty on jute sacking bags to protect domestic manufacturers from cheap imports.
The petitioners have sought extension of the existing anti-dumping duty to jute sacking clothes as well.
The product under investigation is jute sacking cloth, alleged to be circumventing the anti-dumping duty, the DGAD said adding the circumventing product goes into use of jute sacking bags.
The period of investigation is from October 2016 to December 2017 (15 months).
Companies involved in jute goods manufacturing in the country includes Gloster Ltd and Ludlow Jute & Specialities.
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