Anti-dumping duty imposed on Chinese chemical import

  • 28-Jan-2019
  • Anti-dumping duty imposed on Chinese chemical import

The government has imposed an anti-dumping duty on a chemical from China, used in photography and manufacturing of dyes, for five years to protect domestic producers of the chemical intermediate from cheap shipments.

The anti-dumping duty on Meta Phenylenediamine (MPDA) imported from China will be in the range USD 573.92-USD 1,015.44 a tonne, according to a notification of the Central Board of Indirect Taxes and Customs (CBIC).

It is for the second time in a row that anti-dumping duty has been imposed on the import of the chemical from China. The duty was to expire in March 2019.

The levy has been imposed after the Directorate General of Trade Remedies (DGTR), under the Ministry of Commerce and Industry, made a recommendation for the same. DGTR was earlier known as the Directorate General of Anti-dumping and Allied Duties (DGAD).

On the recommendation of DGAD, a definitive anti-dumping duty was imposed on the chemical in March 2014.

Later, Aarti Industries filed an application before DGAD for review and continuation of the duty on the chemical.

Following 'Sunset Review' of an anti-dumping investigation on the imports of MPDA, the DGTR recommended for imposition of the levy for another five years.

MPDA is a chemical intermediate used for manufacturing dyes, engineering polymer and in photography and medical applications.

Under normal (room) conditions, it is a colourless or white colour solid, which tends to turn red, purple (dark colour) in air, on storage.

Countries carry out the anti-dumping probe to determine whether the domestic industries have been hurt because of a surge in cheap imports.

As a counter measure, they impose duties under the multilateral regime of the World Trade Organization.

The duty is aimed at ensuring fair trading practices and creating a level-playing field for domestic producers with regard to foreign producers and exporters. 

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