India Levies Anti-Dumping Duty on Water Treatment Chemicals from China and Japan

India has implemented an anti-dumping duty of up to $986 per tonne on 'Trichloro isocyanuric acid,' a chemical used in water treatment, imported from China and Japan, according to a report by news agency PTI. As per a notification from the Ministry of Finance, this duty will remain in effect for five years to safeguard the domestic industry from low-cost imports.

"The anti-dumping duty imposed...shall be levied for a period of five years (unless revoked, superseded or amended earlier)," the notification stated.

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The decision comes in response to recommendations from the Directorate General of Trade Remedies (DGTR), the investigative arm of the commerce ministry. The DGTR determined that domestic manufacturers have experienced "material injury" due to the dumping of this chemical from China and Japan.

What is an anti-dumping duty?

Anti-dumping measures like these are implemented to promote fair trade and create a level playing field for local industries. Their purpose is not to restrict imports or artificially increase product costs. The DGTR investigates such cases and provides recommendations, while the finance ministry makes the final decision, typically within three months.

The World Trade Organization (WTO) permits countries to impose anti-dumping duties as a legitimate trade measure, but only when thorough investigations confirm that dumping is occurring. These duties generally remain in place for several years and may be reviewed or extended if necessary.

China and Japan are among India's key trading partners. As per WTO regulations, countries can impose anti-dumping duties when domestic industries suffer due to below-cost imports.

This measure aims to protect Indian manufacturers from unfair pricing practices and maintain market stability for the chemical.

(This Article was originally published by Business Standard)