The government is likely to impose anti-dumping duty of up to USD 135.40 per tonne on imports of a chemical used in foam making from Thailand.
The move is aimed at protecting domestic players from cheap imports of 'Flexible Slabstock Polyol' from the South-East Asian country.
The application for the anti-dumping investigation was filed by Manali Petrochemicals Ltd on behalf of the domestic industry. The company has claimed that these account for more than 95 per cent of the total production for the product.
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In its final findings, the Directorate General of Anti-Dumping and Allied Duties (DGAD), under the commerce ministry, has concluded that the domestic industry has suffered material injury due to the dumped imports from Thailand.
"The authority considers it necessary to recommend imposition of definitive anti-dumping duty on imports of the subject goods (chemical) from Thailand," DGAD said in a notification.
The chemical is used in the foam industry, which is used in upholstery, mattresses, pillows, transport seating and packaging.
While DGAD recommends the duty, the finance ministry imposes it.
Countries initiate anti-dumping probes to determine if the domestic industry has been hurt by a flooding of below-cost imports. As a counter-measure, they impose duties under the multi-lateral WTO regime.
Anti-dumping measures are taken to ensure fair trade and provide a level-playing field to the domestic industry. They are not a measure to restrict imports or cause an unjustified increase in cost of products.
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