The government has initiated a probe into an alleged dumping of clear float glass, used in automobiles and refrigeration industries, from Malaysia following a complaint from domestic players.
The investigation is being conducted by the commerce ministry's arm Directorate General of Trade Remedies (DGTR).
In a notification, the directorate has said it has found sufficient evidence of dumping of the glass from Malaysia and its impact on the domestic industry.
"The authority hereby initiates an investigation into the alleged dumping, and consequent injury to the domestic industry," it said.
In the probe, it would determine the existence and effect of the alleged dumping and recommend the amount of anti-dumping duty, which if levied, would be adequate to remove the injury to the domestic industry.
While DGTR recommends the duty, the finance ministry will take the final call to impose the same.
The anti-dumping duty, if imposed, would help guard domestic players in the sector against cheap imports of the product.
The period of investigation is 2018-19. However, the data of 2015-18 would also be looked into by the directorate to understand the impact of imports.
Saint-Gobain India, Sisecam Flat Glass India, Gold Plus Glass Industries Ltd and Asahi India Glass had filed a joint application before the DGTR for initiation of anti-dumping investigation.
The glass have major uses in construction, refrigeration, mirror and automobile industries. It is a superior quality of glass.
Malaysia is a key trading partner of India in the Southeast Asian region. The bilateral trade between the countries increased to USD 17.25 billion in 2018-19 from USD 14.71 billion in 2017-18.
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 price of that product in the exporting country, hitting margins and profits of 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.
In its probe, the directorate has to conclude whether the dumped products are impacting domestic industries.
Imposition of anti-dumping duty is permissible under the World Trade Organization (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.
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