Synopsis
India has enacted an anti-dumping duty on several Chinese products to protect its domestic industry from unfair competition. This includes aluminium foil and other goods that were being sold at below-market prices, impacting local manufacturers adversely.Key Takeaways
- India imposes anti-dumping duties on Chinese imports.
- Products affected include aluminium foil and trichloro-isocyanuric acid.
- Duties range from $276 to $1,732 per tonne.
- Measures aim to protect domestic industries from unfair competition.
- Public comments invited before final decisions are made.
New Delhi, March 23 (NationPress) India has enacted an anti-dumping duty on four products from China, including aluminium foil, in order to protect its domestic industry. These items were being sold at prices significantly lower than the standard market rates.
The duties affect soft ferrite cores, vacuum-insulated flasks of a specified thickness, aluminium foil, and trichloro-isocyanuric acid. The influx of these low-cost goods has negatively impacted local manufacturers in India.
According to notifications from the Central Board of Indirect Taxes and Customs (CBIC), the duty will be applicable for a duration of five years on imports of soft ferrite cores, vacuum-insulated flasks, and trichloro-isocyanuric acid, which serves as a disinfectant and chlorinating agent. This compound is often found in tablet or granular form and is the main ingredient in chlorine tablets used for maintaining swimming pool hygiene.
An anti-dumping duty of up to $873 per tonne has been established for aluminium foil for a period of six months.
The CBIC has set a duty ranging from $276 per tonne to $986 per tonne for imports of trichloro isocyanuric acid sourced from China and Japan.
Additionally, a duty of up to 35 percent on CIF (cost, insurance, freight) value has been imposed on soft ferrite cores, essential for manufacturing electric vehicles, chargers, and telecom devices. Furthermore, an anti-dumping duty of $1,732 per tonne has been applied to vacuum insulated flasks.
These duties were instituted following an examination by the Commerce Ministry's Directorate General of Trade Remedies (DGTR), which concluded that these products were being sold below production costs, thereby harming the Indian industry. A safeguard duty acts as a temporary measure to protect domestic industries from a surge in imports.
The imposition of anti-dumping duties is permissible under World Trade Organisation (WTO) rules and aims to promote fair trading practices while protecting local producers and manufacturers from unfair competition.
In a related recommendation on March 19, India’s DGTR suggested a 12 percent safeguard duty on certain steel products to shield the domestic industry from a flood of cheap imports from nations like China, South Korea, and Vietnam, which is a consequence of increased US tariffs under the Trump administration.
The findings are currently open for public comment for 30 days, after which a final decision will be made. The authority aims to implement protective measures provisionally to shield the domestic industry from the surge in imports.
Trade diversion resulting from protective actions taken by the United States has significantly contributed to the rise in imports.
