In a bid to protect domestic manufacturers, India today imposed anti-dumping duty on polypropylene imports from Singapore.
A notification of the Revenue Department said that anti-dumping duty of USD 145.2 per tonne has been imposed on polypropylene originating in or exported from Singapore.
The safeguard duty covers producers like Exxon Mobil Chemical Asia Pacific, Singapore and The Polyolefin Company (Singapore) Pte Ltd whose products are exported to India by traders like Itochu Plastics Pte Ltd.
"The anti-dumping duty imposed under this notification shall be effective for a period of five years (unless revoked, superseded or amended earlier) from the date of publication of this notification in the Official Gazette and shall be paid in Indian currency," the notification said.
Polypropylene is used for manufacture of woven sacks for cement, foodgrains, sugar, fertilizer, bags for fruits and vegetables as also film packaging. Besides various consumer items, it also finds application in auto parts, appliances, furniture and houseware.
Originally, the government had in 2009 imposed anti-dumping duty on polypropylene imports from Oman, Saudi Arabia and Singapore. The safeguard duty on imports from Singapore was extended by one year to July 29, 2015. There was no duty thereafter.
"In the matter of review of anti-dumping duty on import of the subject goods, originating in or exported from the subject country, the designated authority in its final findings... Has come to the conclusion that injury to the domestic industry is likely to continue in the event of cessation of anti-dumping duty on imports of subject goods from the non-cooperative producers or exporters from subject country...," the notification said.
The subject country in the order was Singapore and subject goods being polypropylene.
Directorate General of Anti-Dumping & Allied Duties had recommended imposition of the safeguard duties on an application filed by Reliance Industries alleging injury to domestic industry by imports from Singapore.
Besides RIL, three other companies produce polypropylene -- Haldia Petrochemicals, Indian Oil Corporation and HPCL-Mittal Energy.
Manufacturers had claimed polypropylene being dumped into India, are identical to the goods produced by the domestic industry. There were no differences either in the technical specifications, functions or end-uses of the dumped imports and the domestically produced subject goods.
In 2009, the government had imposed a provisional anti-dumping duty of USD 81.20 per ton on polypropylene produced by Polyolefin Company (Singapore) Pte Ltd and exported by Sumitomo Corporation Asia Pte Ltd.
That year, the provisional anti-dumping duty was put at USD 119.32 per tonne for polypropylene produced by Polyolefin Company (Singapore) Pte Ltd and exported by Toyota Tsusho (Singapore) Pte.
