India’s commerce ministry’s investigation arm DGTR has recommended the imposition of anti-dumping duty on certain aluminium products from China to guard domestic manufacturers from cheap imports. The Directorate General of Trade Remedies (DGTR) concluded in its probe that the dumped imports of ‘Certain Flat-Rolled Products of Aluminium’ from China have impacted the domestic industry.
The material injury suffered by the domestic industry has been caused by the dumped imports, DGTR said in a notification. “The Authority, therefore, considers it necessary to recommend imposition of the definitive anti-dumping duty…on all imports of the subject goods…originating in or exported from China,” it added.
The DGTR has recommended USD 65 per tonne and USD 449 per tonne on imports. The finance ministry takes the final decision to impose the duty.
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 that product in the importing country, hitting the margins and profits of the 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.
The imposition of anti-dumping duty is permissible under the World Trade Organization (WTO) regime. India and China are members of this 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.