DGTR for anti-dumping duty on Chinese chemical to avert cheap imports

The commerce ministry's investigation arm DGTR has recommended imposition of provisional anti-dumping duty on 'PET resin' chemical from China to guard domestic players from cheap imports.

The Directorate General of Trade Remedies (DGTR) has recommended duty of up to USD 200.66 per tonne after conducting a probe on alleged dumping of 'Polyethylene Terephthalate' (PET resin) by Chinese companies, following a complaint by domestic manufacturers.

The resin is used for the manufacturing of preforms, which are then converted into PET bottles and jars for the storage of mineral water, carbonated soft drinks, edible oils and pharmaceutical products, among others.

Dhunseri Petrochem Industries Pvt Ltd and Reliance Industries Ltd had filed an application for initiation of the anti-dumping investigations.

 

In its preliminary findings, the directorate has concluded that the product has been exported to India from China below its normal values and the domestic industry has suffered material injury due to the dumped imports.

The directorate is of the view that imposition of provisional duty is required to offset dumping and injury, pending completion of the investigation, the DGTR has said in a notification.

"The authority recommends imposition of provisional anti-dumping duty on the imports," it said.

In international trade parlance, dumping happens when a country or a firm exports an item at a price lower than the price of that product in its domestic market. Dumping impacts the price of that product in the importing country, hitting margins and profits of domestic manufacturing firms.

According to global trade norms, a country is allowed to impose tariffs on such dumped products to provide a level-playing field to domestic manufacturers. The duty is imposed only after a thorough investigation by a quasi-judicial body, such as DGTR in India.