Anti-dumping duty likely on a Chinese chemical

India is likely to impose anti- dumping duty of up to $0.78 per kg on a Chinese chemical used in photography and medical applications so as to protect domestic players from cheap imports.

The Directorate General of Anti- dumping and Allied Duties (DGAD) has recommended imposition of duty on imports of 'Meta Phenylene Diamine' from China, the Commerce Ministry said in a notification.

The Directorate's recommendation comes on the basis of its findings that the increasing imports have caused "material injury" to the domestic industry, it said.

DGAD, which is under the Commerce Ministry, has said that the chemical has been exported to India from China at below its normal value.

"...The Authority recommends imposition of anti-dumping duty...So as to remove the injury to the domestic industry," it added.

The anti-dumping duty is recommended by the Commerce Ministry, and imposed by the Finance Ministry.

It has recommended three categories of the restrictive duty - $0.57 per kg, $0.61 per kg and $0.78 per kg.

Imports of the chemical from China has increased to 3,743 tonne in 2010-11 from 1,919 tonne in 2008-09.

Unlike safeguard duties, which are levied in a uniform way, anti-dumping duties vary from product to product and from country to country.

Countries initiate anti-dumping probes to check if domestic industry has been hurt because of a surge in below- cost imports. As a counter-measure, they impose duties under the multilateral WTO regime.