Anti-dumping duty on methylene chloride imported from China: Review on extension

China has surplus production capacities and they are further expanding capacities adding to the already existing huge surplus capacity

Air Cargo Import Export
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The Union commerce ministry’s investigation arm Directorate General of Trade Remedies (DGTR) has initiated a Sunset review investigation to see whether there is a need for continuation of existing anti-dumping duty imposed on the import of methylene chloride from China.

Gujarat Fluorochemicals Ltd, TGV SRAAC Ltd and Chemplast Sanmar Ltd have lodged a complaint with DGTR for the review of the duties on imports of methylene chloride, used in pharmaceutical and fragrance sectors, from China. The applicants have requested for continuation of the anti-dumping duty imposed on the chemical arriving from China. They claimed that imports from China have increased in India despite imposition of anti-dumping duty, and the volume of such imports is significant.

China has surplus production capacities and they are further expanding capacities adding to the already existing huge surplus capacity. Since India’s demand is increasing and the country being a favourable market for China, and considering the price undercutting, cessation of anti-dumping duty would have a suppressing and depressing effect on the prices of the product in the market,” the applicants stated.

The Union finance ministry on December 8, 2015 imposed the duty of US$ 122.14-279.78 per tonne on import of methylene chloride from China and Russia for five years to protect domestic manufacturers. The current anti-dumping duties will expire in December 2020.

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The applicants have not sought extension of anti-dumping duties on imports of the chemical from Russia as there are no current exports from Russia and there is no evidence of likelihood of dumping and injury from Russia.

According to a notification of the directorate, the applicants have alleged likelihood of continuation or recurrence of dumping of the chemical from China and consequent injury to the domestic industry. It has stated that there is sufficient prima facie evidence that the normal value of methylene chloride in China is higher than the ex-factory export price, indicating, prima facie, that the chemical is being dumped into the Indian market by the exporters from China.

“For the purpose of this investigation, China is the subject country. The period of investigation will be from 1st April, 2019 to 31st March, 2020. The injury investigation period will cover the periods 1st April 2016 – 31st March 2019,” it added.

Countries conduct anti-dumping investigations to check if domestic industry has been hit due to burgeoning imports of the products from other countries below their normal value. As a counter-measure, they impose anti-dumping duties under the multilateral WTO regime.

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