India initiates probe into dumping of Chinese chemical

The government has initiated a probe into the alleged dumping of a chemical, mainly used in the rubber industry, by China after finding "sufficient evidence" of injury to the domestic players. While initiating the investigation concerning imports of Azodicarbonamide by China, the Commerce Ministry said it would determine the existence, degree and effect of the alleged dumping to recommend the amount of duty. "The Authority... Hereby initiates an investigation into the alleged dumping, and consequent injury to the domestic industry, to determine the existence, degree and effect of alleged dumping and to recommend the amount of anti-dumping measures, which, if levied, would be adequate to remove the injury to the domestic industry," the Ministry said in a notification. Directorate General of Anti Dumping & Allied Duties is the nodal agency under the ministry for such investigations. The period of investigation is October 2008 to September 2009. The investigation has been started on a complaint filed by Delhi-based Demaco Polymers Ltd. As many as 11 anti-dumping duties have already been imposed on Chinese firms from April to February, 2009-10. Unlike safeguard duties, which are levied in a uniform way, anti-dumping duties vary from product-to-product and from country to country. Countries initiate anti-dumping probes to check if their domestic industries have been hurt because of a surge in cheap imports. As a counter measure, they impose duties within the multilateral regime of the WTO. Anti-dumping measures are taken to ensure fair trade and provide a level playing field to domestic industry. It is not a measure to restrict imports or cause an unjustified increase in the cost of products.