Government today extended the anti-dumping duty on import of melamine from China for five years and also imposed the levy on Mulberry Raw Silk from the neighbouring country to protect domestic industry from cheap inbound shipments.
The Department of Revenue in the Finance Ministry issued a Gazette Notification extending the levy at a rate of USD 331.10 per tonne anti-dumping duty on import of melamine, which is used in beauty and utility products from China.
In a separate notification, it imposed an anti-dumping duty of USD 1.85 per kg on Mulberry Raw Silk from China.
India had first imposed the restrictive duty on melamine imported from China in November 2004. Imposition of such duty was extended up to February 18, 2016.
It has now been extended for five year.
In imposing the safeguard duty on melamine, the department went with the findings of the Directorate General of Anti-dumping and Allied Duties (DGAD) which stated that there is "continued dumping" of the chemical product from China which is causing "injury to the domestic industry."
In the "event of revocation or cessation of anti-dumping duties, dumping of subject goods from subject country (China) and injury to domestic market is likely to continue or intensify," it had observed.
In case of Mulberry Raw Silk, DGAD had stated "the material injury has been caused by the dumped imports of the subject goods" from China and "recommended imposition of definitive anti-dumping duty on imports" in order to "remove injury to the domestic industry."
Imports of the silk from China had increased considerably from 12.63 lakh kg in 2010-11 to 22.17 lakh kg during the period of the investigation (April 2013 to June 2014).
India had imposed the restrictive duty on melamine for the first time in November 2004. In 2008, DGAD initiated the sunset review in the matter of continuation of anti-dumping duty on imports and in 2010 the duty was imposed.
Further, after the complaint of the domestic industry, the authority initiated the second sunset review investigation in December 2014 to review the need for continued imposition of the duties.
Melamine imports from China have increased from 17,580 tons in 2010-11 to 30,780 tons during April 2013 to June 2014.
Anti-dumping measures are taken to ensure fair trade and provide a level playing field to domestic industry. It is not a measure to restrict imports or cause an unjustified increase in the cost of products.
