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Business: DGTR, a unit of the Commerce Ministry, has initiated anti-dumping investigation on a particular rubber imported from China. This rubber is mainly used in the automobile industry.
Demand to impose anti-dumping duty on imports from China
The investigation has been initiated after a complaint by Reliance Sibur Elastomers. The company alleges that Indian manufacturers are suffering losses due to dumping of halo isobutane and isoprene rubber from China. DGTR, in its notification, said the applicant has sought imposition of anti-dumping duty on imports from China so as to protect the domestic industry from unfair price competition.
Domestic companies are suffering losses due to cheap imports
DGTR has said that this investigation has been initiated on the basis of detailed application filed by the domestic company and preliminary evidence presented. The application alleges that dumping of rubber from China is causing loss to the Indian industry.
What will happen if the allegation is proved true?
According to DGTR, if the investigation proves that cheap imports have caused material loss to domestic companies, the body will recommend imposition of anti-dumping duty. The final decision on this will be taken by the Finance Ministry. This rubber is also used in the manufacture of inner tubes of bicycle, car, truck and industrial tires, as well as seals, tank linings, conveyor belts, safety apparel and sporting goods such as ball bladders.
Why are anti-dumping investigations conducted?
Anti-dumping investigations are usually initiated when the domestic industry in a country is suspected of being injured by cheap imports. In such cases, anti-dumping duties are imposed under the World Trade Organization (WTO) framework to create a level playing field between domestic producers and foreign exporters.
India has imposed anti-dumping duty on many countries
Both India and China are members of WTO. India has earlier also imposed anti-dumping duty on cheap imports from many countries including China to ensure protection of local industries.
