The revenue department has imposed antidumping duty on import of a chemical -- used in furniture cushion and automobile seats -- from China, Japan and Korea.
The levy will protect domestic manufacturers of the chemical from below-cost imports.
The duty on import of the organic compound 'Toluene di- isocyanate' (TDI) in the range of USD 0.14-0.40 per kg has been imposed for six months.
The Directorate General of Anti-Dumping & Allied Duties (DGAD) had recommended the imposition of provisional anti- dumping duty on imports in its preliminary findings.
Gujarat Narmada Valley Fertilizers and Chemicals had approached the DGAD for imposition of the duty alleging dumping of the product from the three countries.
After a probe, the DGAD said the organic compound has been exported to India below normal values and the domestic industry has suffered material injury.
It had recommended imposition of provisional antidumping duty "so as to remove the injury to the domestic industry".
The product is used for production of certain type of foam, furniture cushion, industrial gaskets, protective pads for sports, and automobile seats, among others.
Imposition of antidumping duty is permissible under the World Trade Organisation (WTO) regime.
The duty is aimed at ensuring fair trading practices and creating a level-playing field for domestic producers vis-a- vis foreign producers and exporters.
Disclaimer: No Business Standard Journalist was involved in creation of this content
