Govt begins dumping probe into chemical imports from Thailand

The government has initiated a probe into the alleged dumping of a chemical from Thailand, used in textiles and packaging industry in the domestic market.
The move is aimed at safeguarding domestic players from cheap imports of "Flexible Slabstock Polyol".
The Directorate General of Anti-Dumping and Allied Duties (DGAD), an arm of the Commerce Ministry, has begun investigations into the matter.
In a notification, the DGAD has said that it has found sufficient prima facie evidence of dumping of the product from Thailand.
"The authority hereby initiates an investigation into the alleged dumping, and consequent injury to the domestic industry...To determine the existence, degree and effect of any alleged dumping and to recommend the amount of anti-dumping duty, which if levied would be adequate to remove the injury to the domestic industry," it said.

The period of investigation is from October 2014 to September 2015. However, for the purpose of analysing injury, the data of 2012-13, 2013-14 and 2014-15 would also be considered.

After the probe, DGAD, if needed, will recommend an anti-dumping duty and the Finance Ministry will impose it.
Manali Petrochemicals Ltd has filed the application before the DGAD alleging dumping of the chemical.
Countries initiate an anti-dumping probe to determine whether their domestic industries have been hurt because of surge in cheap imports of any product. As a counter measure, they impose duties under the multilateral regime of the WTO.
The duty is aimed at ensuring fair trading practices and creating a level-playing field for domestic producers vis-a- vis foreign producers and exporters resorting to dumping of goods at below-cost rates.