Anti-dumping duty Current Affairs - 2020
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The Union Government has announced that anti-dumping duty is in force on 93 Chinese products to protect profitability of the domestic industry from import of cheap Chinese goods.
These products fall in the broad groups of chemicals and petrochemicals, steel and other metals, machinery items, fibres and yarn, rubber, plastic products, electric and electronic items and consumer goods, among others.
In addition to these 93 products, 40 cases concerning imports from China have been initiated by Directorate General of Anti-Dumping and Allied Duties (DGAD).
Anti-dumping duty is a protectionist stance taken by a government to cushion domestic companies from an increase in cheap price imports. It is imposed by government on imported products which have prices less than their fair normal values in their domestic market.
Why it is imposed?
When a country exports its products to other countries with a selling price below the cost price of the same product in other countries then it is called as dumping of products. This harms the profitability of domestic companies. Anti-dumping steps are taken to ensure fair trade and provide a level-playing field to the domestic industry.
Mechanism for imposition
Anti-Dumping Duty is imposed under the multilateral World Trade Organisation (WTO) regime and varies from product to product and from country to country. In India, anti-dumping duty is recommended by the Union Ministry of Commerce (i.e. by DGAD) and imposed by the Union Finance Ministry.
Tags: Anti-dumping duty • Business • China • Economy • National
The Indian Steel Association (ISA) has asked the Central Government not to impose any anti-dumping duty on Metallurgical Coke (met coke) fearing cost escalation of their products.
A levy of anti-dumping duty on met coke will have a cost-push effect on the steel sector. It will fuel further the cost of steel making, resulting in an increase in the cost of finished steel.
What is Metallurgical Coke?
Metallurgical coke is made from low ash, low sulfur bituminous coal, with special coking properties. It is one of the most important and critical raw materials for the steel industry. The steel industry in India having large blast furnaces requires met coke with high ash content and moisture content of less than 5% to run efficiently. This demand is met through imports from other countries as the domestic met coke has low ash content and high moisture content along high phosphorous and sulpher content.
What is the issue?
The Union Ministry of Commerce had initiated anti-dumping investigation on import of low ash met coke from Australia and China in the year 2015. It had resulted in the sharp increase in the price of this key raw material with no signs of abating. Besides this, domestic steel industry is getting affected by the unbridled steel imports from countries such as China, Japan, South Korea, Russia at predatory prices.
Tags: Anti-dumping duty • Business • Economy • Metallurgical coke • National