The government will not extend anti-dumping duty on imports of Chinese paracetamol, used in medicines, as the domestic industry has failed to provide evidence that the expiry of the levy would result in dumping.
After concluding its probe, the commerce ministry investigation arm for dumping of goods DGTR has said that it does not recommend continuation of the anti-dumping duty on the imports of paracetamol from China.
"The authority holds that domestic industry failed to provide any satisfactory evidence that the expiry of the said anti-dumping duty is likely to lead to continuation or recurrence of dumping and injury to the domestic industry," the directorate general of trade remedies (DGTR) said in a notification.
The finance ministry has first imposed anti-dumping duty on the product in 2002, then extended in 2007 and then again in October 2013 for five years.
The anti-dumping duty was ended in October 2018. Before expiry of this duty, the domestic industry in May 2018 approached the directorate to seek continuation of the levy.
The application for continued imposition of the duties was filed by Farmson Pharmaceuticals Gujarat and Krishna Pharmaceuticals.
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Due to the initiation of the probe, in August 2018, the validity of the duty was extended by the government up to May 24, 2019.
"Evidence on record does not indicate that the dumped imports from China will lead to injury to the domestic industry," it said, adding that the imports from China have remained at insignificant level throughout the injury period (2014-18).
It said the anti-dumping duty "was in force since September 2001 and the condition of domestic industry has improved. Therefore, the duty has served its intended purpose".
Countries carry out anti-dumping probe to determine whether their domestic industries have been hurt because of a surge in cheap imports.
As a counter measure, they impose duties under the multilateral regime of the World Trade Organization.
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.