Anti-dumping duty imposed on Japanese, Chinese gas

India has imposed anti-dumping duty of up to $1.41 per kg on imports of a gas, used primarily for refrigeration purpose, to protect domestic players from cheap Chinese and Japanese shipments.

The restrictive duty on the import of '1,1,1,2-Tetrafluoroethane or R-134a' would be imposed for a period of five years, the Department of Revenue said.

The duty would range from between $0.69 per kg and $1.41 per kg on imports of the gas from Japan and China, it said.

"The anti-dumping duty imposed shall be levied for a period of five years (unless revoked, superseded or amended earlier)... And shall be payable in Indian currency," the department said.

R-134a is an inert gas used primarily as a "high temperature" refrigerant for domestic refrigeration and automobile air conditioners. Other uses include plastic foam blowing and as a cleaning material and for removing moisture from compressed air.

The Directorate General of Anti-Dumping and Allied Duties (DGAD), a nodal agency under the Commerce Ministry, had recommended the imposition of duty after an investigation.

The DGAD had concluded in its probe that the domestic industry had suffered a material injury on account of dumping of the product by the two countries.

The country has already imposed anti-dumping duty on imports of fabric, yarn, nylon tyre cord and several chemicals. Anti-dumping duty is recommended by the Commerce Ministry, while the Finance Ministry imposes the same.

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 cheap imports.

As a counter-measure, they impose duties under the multilateral WTO regime.