India has extended anti dumping duty on imports of front axle beam and steering knuckles - meant for heavy and medium commercial vehicles - from China, till January 31, 2021.

The Central Board of Indirect Taxes and Customs (CBIC) said in a notification on Friday that the duty was earlier extended till November 30, now stands extended further by two months.

The duty was first imposed in October 2015 after the Directorate General of Trade Remedies (DGTR) had found that the imports were impairing local industry.

The Board added that the designated authority, in this case the Directorate General of Trade Remedies (DGTR), had sought for continuation of the anti-dumping duty after conducting a review of the same which was initiated in April this year.

“The designated authority has requested for further extension of the antidumping duty on the subject goods originating in or exported from the subject country,” the notification added.

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 the price of the product in the importing country, hitting 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.

Source: The Economic Times