State-owned Gujarat State Fertilisers and Chemicals Ltd (GSFCL) has got a reprieve from the Competition Commission of India in a case related to anti-dumping duty on melamine imports from China.

 

Merino Panel Products, a melamine exporter, had approached the competition watchdog against GSFCL and the Directorate-General of Anti-Dumping and Allied Duties, alleging contravention of the Competition Act.

 

Merino informed the Commission that pursuant to an anti-dumping investigation in 2003 about alleged dumping of melamine into India from China, the Directorate-General had recommended imposition of anti-dumping duty on the imports from China.

 

“The Commission finds that there is no prima facie case of contravention of the provisions of the Act,” the Commission said in its order.

 

GSFCL is engaged in the business of producing melamine, a non-toxic substance used to laminate some electrical appliances. It is the sole producer of melamine in the country and a number of companies, including the complainant, Merino Panel Products, import melamine from abroad.

 

Merino said that the anti-dumping duty was reviewed and imposed again in 2010, while adding that GSFCL turned its attention to imports from Europe, Indonesia, Japan and Iran after making melamine imports from China costlier.

 

Pursuant to request from GSFCL, the Directorate-General investigated dumping issue from these countries and recommended imposition of anti-dumping duty on the imports from these countries as well last year.

 

Merino alleged that imposition of anti-dumping duty had enabled GSFCL to unilaterally increase sale price for its melamine, thereby forcing purchase of the product at artificially hiked prices.

 

It accused GSFCL of abusing its dominant market position, while the Directorate-General was also accused of following anti-competitive practices in recommending levy of anti-dumping duty on melamine.