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Anti-dumping duty likely on TDI imports from China, Japan, Korea

India may impose anti-dumping duty of up to $0.4 per kg on TDI, a chemical used in foam making, from…

Anti-dumping duty likely on TDI imports from China, Japan, Korea

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India may impose anti-dumping duty of up to $0.4 per kg on TDI, a chemical used in foam making, from China, Japan and Korea to guard domestic players against cheap imports.

Gujarat Narmada Valley Fertilizers & Chemicals Ltd had filed the application before the Directorate General of Anti- dumping and Allied Duties (DGAD) for initiation of anti- dumping investigations on imports of 'Toluene Di-Isocyanate' (TDI).

In its preliminary findings, the DGAD has concluded that the chemical was exported from these three countries at below their normal value due to which domestic industry has suffered material injury.

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The authority has recommended “imposition of provisional anti-dumping duty” to remove the injury to the domestic players, DGAD said in a notification.

The suggested duty was ranged between $0.14 per kg and $0.4 per kg.

Imports of the chemical from these countries have increased from 30,097 tonnes in 2012-13 to 32,115 tonnes in 2015-16.

While DGAD recommends the duty, Finance Ministry imposes it.

TDI is used for production of a certain variety of foam, furniture cushion, protective pads for sports and medical use, automobiles seats, packing of electronic items and others.

Countries initiate anti-dumping probes to determine if the domestic industry has been hurt by a surge in below-cost imports. As a counter-measure, they impose duties under the multi-lateral WTO regime.

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

Unlike the safeguard duty, which is levied in a uniform way, anti-dumping duty varies from company to company and country to country.

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