India may impose anti-dumping duty on import of a certain variety of fibre board, used in furniture and other related industries, as the Commerce Ministry has initiated a probe for alleged dumping of the product from a Vietnamese company.
The probe follows a complaint by domestic manufacturers -- Greenply Industries, Greenpanel Industries, Century Plyboards, and Rushil Decor.
The companies filed an application before the ministry's Directorate General of Trade Remedies (DGTR) for initiation of anti-dumping investigations on imports of plain medium density fibre board having thickness of 6 mm and above produced by Kim Tin MDF Joint Stock Company, Vietnam.
The manufacturers have alleged that they are being impacted due to dumped imports from the company.
The DGTR, in a notification, said that on the basis of prima facie evidence submitted by these domestic firms, "the authority, hereby, initiates an investigation to determine the existence, degree and effect of any alleged dumping" of the product by this Vietnam-based firm.
The directorate would recommend imposition of anti-dumping duty if the probe concludes that there is dumping of the product.
The Revenue Department takes the final decision to impose the duty.
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 the product in importing 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.
Imposition of anti-dumping duty is permissible under the World Trade Organization (WTO) regime. India and Vietnam are members of the Geneva-based organisation, which deals with global trade norms.
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
