India imposes anti-dumping duty on TDI imports for 6 months

India has imposed provisional anti-dumping duty on imports of Toluene Di-isocyanate (TDI) having isomer content in the ratio of 80:20, from European Union, Saudi Arabia, Chinese Taipei and UAE, for six months beginning December 2.

The Central Board of Indirect Taxes and Customs (CBIC) said in a notification issued Wednesday that the decision has been taken after the Directorate General of Trade Remedies (DGTR) recommended imposition of the duty in order to remove injury to the domestic industry.

"There is substantial increase in imports of subject goods from the subject countries in
absolute terms as well as in relation to its production and consumption in India, during the period of investigation as compared to the previous year," the notification noted as reasons by DGTR for recommending the duty.

"The domestic industry has suffered material injury," the CBIC said in its notification. The duty varies between $102.05 and $405.97 per metric tonne, depending on the country of import.

"The provisional anti-dumping duty imposed under this notification shall be effective for a
period of six months (unless revoked, amended or superseded earlier)," it added.

The DGTR had initiated a review and provided preliminary findings in September.

In international trade parlance, dumping happens when a country or a firm exports an item at a price lower than the price of that product in its domestic market.

Dumping impacts price of products in the importing country and adversely affects margins and profits of manufacturing firms.

According to global trade norms, a country is allowed to impose tariffs on such dumped products to provide a level-playing field to domestic manufacturers.

The duty is imposed only after a thorough investigation by a quasi-judicial body, such as DGTR, in India.

Imposition of anti-dumping duty is permissible under the World Trade Organization (WTO) regime. India and Vietnam are members of the Geneva-based organisation, which deals with global trade norms.

The duty is aimed at ensuring fair trading practices and creating a level-playing field for domestic producers vis-a-vis foreign producers and exporters.