India extends anti-dumping duty on methylene chloride imports from China till Jan 31

02/12/2020 12:00 - 51 total view

India has extended anti-dumping duty on imports of methylene chloride from China till January 31, 2021, the Central Board of Indirect Taxes and Customs (CBIC) said in a notification issued Tuesday.

The Board said that the decision has been taken after the Directorate General of Trade Remedies (DGTR) initiated a review and sought for extension of the duty.

"Notwithstanding anything contained in paragraph 2, the anti-dumping duty imposed on the subject goods shall remain in force up to and inclusive of the 31st January, 2021, unless revoked, superseded or amended earlier.” the notification said.

India had first imposed the duty in May 2016.

Methylene chloride is chemical used in the manufacture of pharmaceuticals, agro and fragrance chemicals.

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.