India has imposed anti-dumping duty on imports of fluoroelastomers from China by five years starting November 27, the Central Board of Indirect Taxes and Customs (CBIC) said in a notification issued Friday.
The Board said that the decision has been taken after the Directorate General of Trade Remedies (DGTR) requested for further extension of the anti-dumping duty on the goods originating in or exported from China, as there was a likelihood of continuation of dumping and injury to domestic industry in case the anti-dumping duty is stopped at this time.
“There is sufficient evidence to indicate that the cessation of anti-dumping duty at this stage will lead to continuation of dumping and injury to the domestic industry,” the CBIC said in its notification. The duty ranges between $1.04 and $8.6 per kg.
“The anti-dumping duty imposed under this notification shall be effective for a period of five years (unless revoked, superseded or amended earlier) and shall be paid in Indian currency,” it added.
The DGTR had initiated a review in January on whether the goods being imported were hurting domestic industry, and concluded it last month.
India had first imposed the duty in January 2019, which was extended in July this year till October 27, and then further to November 27.
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 products in the importing country and adversely affects 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.
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