Antidumping duty likely on a chemical from 3 nations

​New Delhi: Government has initiated a dumping probe on imports of a chemical used in foam industry from three countries including China to guard domestic players from below-cost inbound shipments. The investigation was started following a complaint from Gujarat Narmada Valley Fertilisers and Chemicals. The Directorate General of Anti-Dumping and Allied Duties (DGAD), under the commerce ministry, has started the anti- dumping investigation concerning imports of "Toluene DiIsocyanate (TDI)" originating in or exported from China, Japan and Korea.

In a notification, DGAD has said that there is sufficient prima facie evidence that the normal value of the chemical in these countries is significantly higher than the ex-factory export price. It indicates "prima facie, that the subject goods are being dumped into the Indian market by the exporters" from the three countries, it added. The authority has initiated an investigation into the alleged dumping of the product.

TDI is a clear liquid and is used for production of flexible polyurethane foam, furniture cushion, industrial gaskets, protective pads for sports & medical use, automobile seats, furniture, lining, and packing of electronic items, frozen foods, medicines and audio-video computer CD’s. The period of investigation is April 2015 to March 2016 (12 months).

The injury investigation period will, however, cover the periods 2012-15 also. While DGAD recommends the duty to be levied, the Finance Ministry imposes it. Countries initiate anti-dumping probes to determine if the domestic industry has been hurt by a surge in below-cost imports. As a counter-measure, they impose duties under the multilateral 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. India has initiated maximum anti-dumping cases against below-cost imports from China.