Anti-dumping duty on chemical import from China, Russia

Government has imposed anti- dumping duty of USD 122.14-279.78 per tonne on import of a chemical, used in pharmaceutical and fragrance sectors, from China and Russia to protect domestic manufacturers.
The levy on the import of 'Dichloromethane (Methylene Chloride)' will remain in place for a period of five years from December 2015, the Central Board of Excise and Customs (CBEC) said through a notification.
In December last year, a provisional anti-dumping was imposed on such imports.
The definitive duty follows a recommendation for the same by Directorate General of Anti-Dumping and Allied Duties (DGAD).
CBEC said the DGAD in its final findings had concluded that the Methylene Chloride has been exported to India from the two countries has been below normal values and the domestic industry suffered "material injury" by the dumped imports.

The DGAD had made the case for definitive anti-dumping duty on the imports to remove injury to the domestic industry.

Acting on complaint of Chemplast Sanmar and Gujarat Fluorochemicals, the DGAD had initiated a probe in April last year to ascertain if the chemical was being dumped into India at below normal value.
Methylene Chloride is used in the manufacturing of polycarbonate and phenolic resins, rayon yarn, pharmaceuticals, agro and fragrance. It is also used as an extractant for edible fats, cocoa, butter and essences.
WTO member countries are allowed to apply anti-dumping measures on imports of a product if the exporting company ships the product at a price lower than the price it normally charges in its home market and the dumped imports cause or threaten to cause injury to the domestic industry.