India has begun an anti-dumping investigation into the imports of low density polyethylene (LDPE) from the US, UAE, Qatar, Saudi Arabia, Singapore and Thailand after the Chemicals and Petrochemicals Manufacturers Association (CPMA) filed an application to initiate the anti-dumping investigation.
“Reliance Industries Limited (RIL), which is a domestic producer of the product, has provided its information as domestic industry… RIL is the sole producer of the product under consideration in India,” the Directorate General of Trade Remedies (DGTR) said in a notification.
The investigation will cover imports between April 1, 2019-June 30, 2020.
LPDE is used for producing trash bags, frozen food packaging, lamination film, bubble wrap, adhesive tape backing films and foam for manufacture of mattresses, among others.
As per the notification, the association has claimed that due to the price effect of dumped imports, performance of the domestic industry has been adversely impacted leading to an increase in its inventories, decline in its profitability, and return on capital employed.
“There is sufficient prima facie evidence of injury being caused to the domestic industry by dumped imports of subject goods from subject countries,” DGTR said.
In a separate notification, the directorate has recommended an increase in import duty for two years on a Korean synthetic rubber used in tyre making after RIL had filed an application before the directorate in accordance with trade pact between India and South Korea for initiation of bilateral safeguard investigations concerning increased imports of this rubber.
The probe began in November last year.
For the first year, the DGTR has recommended to increase the rate of customs duty to the level of 100% of Most Favoured Nation applied rate of customs duty and 75% in the second year after it found a causal link between the increased imports of the goods due to the reduction or elimination of custom duty under the Korea-India Comprehensive Economic Partnership Agreement (CEPA) and serious injury to the domestic industry.
“Accordingly, the director general recommends increasing the rate of customs duty on imports of subject goods (Polybutadiene Rubber) originating in Korea… to the level of Most Favoured Nation applied rate of customs duty...The measure is recommended for a period of two years”, it said.
The government on July 1, 2020, imposed safeguard measures by eliminating the concessions given under the FTA and increased the rate of custom duty to 10% on the imports of the product imported from Korea for 200 days.