A protectionist move by the Indian government, in the bid to protect its own industry, has imposed an Indian anti-dumping duty of up to $986 per tonne on the Chinese and Japanese water treatment chemical, Trichloro isocyanuric acid. The duty will be for five years as per a Finance Ministry order.
The development comes after a probe by Directorate General of Trade Remedies (DGTR) which had discovered that cheap imports from both the nations were inflicting material damage on local manufacturers. As per norm, the change duty was proposed by DGTR to make a level deception field for home industries.
“The duty charged under sub-section (1) of section 9 of the IGST Act, 2017, shall be for a period of five years, unless revoked, superseded or amended earlier” the notification said.
China and Japan are key trading partners of India but the country has been taking up trade defense against unfair pricing practices. This move is also in line with India’s overall trade policy of countering unfair trading practices and maintaining a level playing field in the market.
Anti-dumping duties are lodged under the regulations of the World Trade Organization (WTO) to stop unfair trade whereby the imposition of duties does not curtail the level of imports. The ultimate choice was laid down by Finance Ministry, in respect of suggestions of DGTR.
The govt is also examining anti-dumping duties on other items such as sodium cyanide and Chinese import of aluminum foil in the broader effort to protect domestic industries.