Anti-dumping duty Current Affairs

Government imposes anti-dumping duty on certain Chinese steel products

The Union Finance Ministry has imposed anti-dumping duty on imports of certain steel wire rods from China for five years to guard interest of domestic players from cheap in-bound shipments. The duty will be difference between landed value of steel products and US $535 per tonne while for others, it should be gap between landed value and US $546 per tonne. Steel wire rod products are used in many sectors such as automotive components, railway, engineering and construction.

Background

It was imposed based on recommendations of Commerce Ministry’s Directorate General of Anti-Dumping and Allied Duties (DGAD). In its findings, DGAD concluded that ‘wire rod of alloy or non-alloy steel’ exported from China to India is below normal value due to which domestic industry has suffered material injury. Finance Ministry

Already has slapped anti-dumping duty on certain cold-rolled flat steel products from four nations, including China and South Korea.

Anti-dumping

Anti-dumping measures are taken to ensure fair trade and provide level-playing field to domestic industry. They are not measure to restrict imports or cause unjustified increase in cost of products. Countries initiate anti-dumping probes to determine if domestic industry has been hurt by surge in below-cost imports. As a counter-measure, they impose antidumping duties under multilateral WTO regime. In India, it is recommended by DGAD and imposed by Finance Ministry.

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Government imposes anti-dumping duty on sodium nitrate imports from China

The Union Finance Ministry’s Revenue Department has imposed a five year anti-dumping duty on Sodium Nitrite imports from China. It was imposed based on recommendations of Directorate General of Antidumping and Allied Duties (DGAD).

In its sunset review, the DGAD concluded that there is “continued dumping” of the ‘sodium nitrite’ from China and it is causing injury to the domestic industry.

Sodium Nitrite

Sodium Nitrite is a white crystalline powder. It is an oxidising and also a reducing agent. It is mostly used in the pharmaceutical and dye industries, lubricants, construction chemicals, rubber blowing agent, meat processing, and textiles.

Anti-dumping Duty

Countries impose anti-dumping duties to safeguard domestic industry from surge in below-cost imports. It is not a measure to restrict import or cause an unjustified increase in cost of products. Anti-dumping duty is imposed inorder to ensure fair trade and provide a level-playing field to the domestic industry.

It is protectionist and counter import measure used by a country under the multilateral World Trade Organisation (WTO) regime. The DGAD, under the Union Commerce Ministry, recommends the duty, while the Union Finance Ministry imposes the same. India so far has also imposed similar anti-dumping duties on import of several other products including steel, fabrics and chemicals from different countries including China.

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