Centre may impose duty on Chinese chemical to protect local players

New Delhi: The government may impose anti-dumping duty of $0.23 per kg on a Chinese chemical used to manufacture explosives for mining to protect domestic players from cheap imports.

In its findings, the Directorate General of Anti-dumping and Allied Duties (DGAD) has recommended imposition of the duty on imports of sodium perchlorate from China, the commerce ministry said in a notification.[caption id="attachment_928907" align="alignleft" width="380"]

Imposing anti-dumping tax. AFP[/caption]

The Directorate's recommendation comes on the basis of its findings that increased imports have caused "material injury" to the domestic industry, it said.

The DGAD, which is under the commerce ministry, in its recommendations said that the chemical has been exported to India below its normal value from China.

"...the Authority is of the view that imposition of definitive duty is required to offset dumping of subject goods (the chemical) into India and consequent injury caused to domestic industry," it said.

Anti-dumping duty is recommended by the commerce ministry, while the finance ministry imposes the same.

Imports of the chemical from China has increased to 1,244 tonnes in 2010-11 from 628 tonnes in 2008-09.

Unlike safeguard duties, which are levied in a uniform way, anti-dumping duties vary from product to product and from country to country.

Countries initiate anti-dumping probes to check if domestic industry has been hurt because of a surge in below-cost imports.

As a counter-measure, they impose duties under the multilateral WTO regime.

PTI