The Directorate General of Trade Remedies (DGTR) has maintained its stand on withdrawal of anti-dumping duty on paracetamol following a court-mandated review of its earlier decision in January, according to a notification by the government body.

“The ADD was in force since September 2001 and the condition of domestic industry has improved. Therefore, the ADD has served its intended purpose," the DGTR said. “The Authority does not recommend continuation of the anti-dumping duty on the imports of subject goods from China PR."

The government body had initially recommended withdrawal of the anti-dumping duty on paracetamol from China in January.

However, Farmson Pharmaceuticals Gujarat Pvt Ltd and Sri Krishna Pharmaceuticals Ltd filed a petition against it in the Gujarat High Court. The high court in July directed the DGTR to review its stance on the matter.

In the review, the DGTR reiterated its stance that cessation of anti-dumping duty on paracetamol would lead to dumping of the drug in India as cooperative producers in China export only about 39% of their products, and that the price at which they export to India is lower than what they could to most countries.

“The domestic industry has shown improvement in terms of all injury parameters and there is no injury to the domestic industry. Furthermore, the production of subject goods by domestic industry is sufficient to cater to Indian demand," DGTR said.

In the sunset review of 2013, the then Directorate General Of Anti-Dumping & Allied Duties had imposed anti-dumping duty of $787 per tonne on paracetamol imported from China.

The Directorate General Of Anti-Dumping & Allied Duties was renamed Directorate General of Trade Remedies last year.

Source: Live Mint