The government can impose anti-dumping duties on a chemical used in the pharmaceutical and pesticide industries of China and Saudi Arabia in order to protect domestic players from cheap imports.
The investigation arm of the Ministry of Commerce, Directorate General of Commercial Remedies (DGTR), has initiated an investigation into an alleged dumping of Dimethyl Formamide from these two countries following a complaint filed by Balaji Amines Ltd on behalf of the national industry.
The company has submitted a request to management to investigate imports from these countries for imposing anti-dumping duties.
DGTR in a notification said on the basis of prima facie evidence presented by the company on the dumping of the product by companies in these two nations, “the authority, hereby, initiates an investigation.”
In the investigation, DGTR will determine the existence, extent and effect of any alleged dumping.
If it is established that dumping has affected the national industry, management would recommend the imposition of the duty. The finance ministry will make the final decision to impose duty.
The investigation period is from January to September 2019 (9 months). I would also analyze the 2016-19 data.
Countries carry out an anti-dumping investigation to determine if their national industries have been affected by an increase in cheap imports. As a countermeasure, they impose rights under the multilateral regime of the World Trade Organization.
The duty is aimed at guaranteeing fair trade practices and creating a level playing field for domestic producers with respect to foreign producers and exporters.