Anti-dumping duty on methylene chloride imports from the EU, US

09/01/2019 12:00 - 147 total view

The Finance Ministry has imposed a definitive anti-dumping duty on ‘methylene chloride’— a chemical used in the manufacture of pharmaceuticals, agro and fragrance chemicals — from the US and European Union.

This anti-dumping duty, unless revoked earlier, will be valid for five years.

It may be recalled that Gujarat Fluorochemicals Ltd and Chemplast Sanmar Ltd had filed the petition seeking sunset review investigations of the import of this chemical from the EU and the US.

Based on the recommendations of the designated authority in the Commerce and Industry Ministry in its sunset review, the Revenue Department will now imposed an anti-dumping duty of $0.32 per kg on methylene chloride produced by Akzo Nobel and exported from EU to India. For all other European producers and exporters of this chemical, the anti-dumping duty has been pegged at $ 0.36 per kg.

For the imports of this chemical from the US, the Revenue Department will impose an anti-dumping duty of $0.33 per kg.

Methylene Chloride is a colourless liquid with sweetish ether-like odour and is predominantly used as a solvent. It is used in the manufacturing of polycarbonate and phenolic resins, rayon yarn, pharmaceuticals, agro and fragrance chemicals.

It is also used as an extractant for edible fats, cocoa, butter and essences.

There are three other domestic producers of this chemical in India—TGV SRAAC Ltd (Sree Rayalseema Alkalies and Allied Chemicals Ltd), Gujarat Alkalies and Chemicals and SRF Ltd.

The Centre had last imposed definitive anti-dumping duty on the import of this chemical from the EU and US in May 2014.
January 9, 2019
Source: The Hindu Business Line