India may impose anti-dumping duty of up to $O.78 per kg on a Chinese chemical that is used for photography and medical applications so as to protect domestic players.
In its preliminary findings, the Directorate General of Anti-dumping and Allied Duties (DGAD) has recommended imposition of the 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 increased imports have caused "material injury" to the domestic industry, it said.
Aarti Industry had filed a petition for imposing anti - dumping duty on behalf of the domestic industry. The company in the application had claimed that it is the sole producer of the chemical in India.
The directorate has recommended two set of duties - $0.57 per kg and $O.78 per kg on different Chinese firms, it said.
The DGAD, which is under the Commerce Ministry, in its recommendations said that the chemical has been exported to India below its normal value from China.
"...The Authority is of the view that imposition of provisional duty is required to offset dumping and injury," it added.
Anti-dumping duty is recommended by the Commerce Ministry, while the Finance Ministry imposes the same.
The country has already imposed anti-dumping duty on imports of fabric, yarn, nylon tyre cord and several chemicals.
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.
