Govt may extend anti-dumping duty on Chinese chemical

New Delhi: India has initiated a sunset review of anti-dumping duty imposed on imports of a Chinese chemical 'Saccharine', used in the pharmaceutical industry. The restrictive duty was imposed for a further period of five years, which ended on January 12.

Three domestic firms including A S Chemoplarma have filed the petition with the Directorate General of Anti-Dumping and Allied Duties (DGAD) seeking initiation of the sunset review of the anti-dumping duty in force on import of 'Saccharine'.

They have sought extension of the duty for five more years. The DGAD has concluded "that the cessation of the duties is likely to lead to continuation or  recurrence of dumping and injury".

"The request is for continuation of the anti-dumping duties in force based on the grounds that dumping of the subject goods has continued in significant volume" from China, the DGAD has said in a notification.

It has been submitted that though the condition of the domestic industry has improved due to imposition of the anti-dumping duties, revocation of the duty would lead to intensified dumping and consequent injury to the industry, it added.

"Having satisfied itself, on the basis of the positive evidence submitted by the domestic industry, substantiating the likelihood of continuation of dumping and recurrence of injury, the Authority hereby initiates a review investigation," it said.

The period of investigation for the purpose of this review shall be from July 2015  September, 2016 (15 months). Saccharin is a non-nutritive sweetener and considered to be low calorie substitute for cane sugar.

It is used in a variety of industries such as pharmaceuticals, food and beverage, personal care products and table top sweeteners. Countries initiate anti-dumping probes to check if their domestic industries have been hurt because of a surge in below-cost imports. As a counter measure, they impose duties within the multilateral regime of WTO.

Anti-dumping measures are taken to ensure fair trade and provide a level-playing field to the domestic industry. It is not a measure to restrict imports or cause an unjustified increase in the cost of products.