The government has decided not to extend the anti-dumping duty imposed on ammonium nitrate imported from Russia, Iran and Georgia.
The finance ministry has not accepted the recommendations of the directorate general of trade remedies (DGTR).
The commerce ministry's investigation arm DGTR had conducted a probe to review the need for continuing imposition of anti-dumping duty on the product imported from these countries, following a complaint from the domestic industry.
In June, the directorate recommended an extension of the duty on imports for two more years.
"...the central government after considering the final findings of the designated authority (DGTR) has decided not to accept the recommendations," the department of revenue has said in an office memorandum.
Smartchem Technologies Ltd had filed an application before the Directorate General of Trade Remedies for initiation of a sunset review investigation, concerning imports of ammonium nitrate originating in or exported from Russia, Georgia and Iran.
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The applicant had alleged that the expiry of anti-dumping duty on the import of the product from these countries is likely to lead to the continuation or recurrence of dumping and injury to the domestic industry.
The product is used in manufacturing slurry-based and emulsion-based explosives, which are in turn used for mining and infrastructure purposes. It is also used as a fertiliser in many countries. However, in India, it is not included under the definition of fertilisers under the Fertiliser Control Order, 1985.
The current duty on the product would expire on September 11.
The duty is aimed at ensuring fair trade practices and creating a level-playing field for domestic producers with regard to foreign producers and exporters.
While DGTR recommends the duty, the finance ministry takes the final decision to impose the same.