India has launched an anti-dumping investigation against imports of a chemical, used in tyre and rubber products, from China and Japan which are allegedly being exported by these countries at prices that are below the fair market value of these goods, according to a notification issued by the Ministry of Commerce on Friday.
The investigation follows a complaint lodged by Atul Limited to the Directorate General of Trade Remedies (DGTR) which alleged the flood of cheap imports of 'Resorcinol' are causing significant harm to India's domestic industry.
The DGTR's notification said: "On the basis of the duly substantiated application filed by the applicant and having satisfied itself, on the basis of the prima facie evidence submitted by the applicant, regarding dumping of the subject goods... the authority hereby initiates an anti-dumping investigation."
The investigation targets dumped shipments of Resorcinol, an intermediate compound used for bonding rubber to tyre cords and in specialised resins.
The World Trade Organisation rules provide for anti-dumping investigations by countries so that they can protect their indigenous industries from the flood of cheap imports by imposing a higher duty on them in order to check the unfair trade practice.
The DGTR has previously investigated and monitored finished automotive tyre imports (such as new pneumatic radial tyres from China and Thailand) as well as raw tyre components like synthetic Halobutyl Rubber (HIIR) imported from the US and China.
The Directorate will examine the existence, scale and impact of the alleged dumping by exporters from both countries.
If the directorate confirms that the imported goods are being sold below fair market value and have caused "material injury" to Indian producers, it will recommend anti-dumping duties on these goods to ensure a level playing field for India's domestic industry.
While the DGTR determines the extent of dumping, the Ministry of Finance holds the final authority to officially levy and enforce these duties to check the flood of cheap foreign goods.
