Government initiates probe into dumping of Chinese product.

NEW DELHI: India has initiated probe into alleged dumping of electrical insulators by China following complaints by domestic players.

The Commerce Ministry's designated authority, the Directorate General of Anti-Dumping and Allied Duties (DGAD), has started an investigation into alleged dumping of the product on the basis of an application filed by companies including Aditya Birla Nuvo Ltd.

"...the authority (DGAD) hereby initiates an investigation into the alleged dumping and consequent injury to the domestic industry...to determine the existence, degree and effect of any alleged dumping and to recommend the amount of anti-dumping duty...to remove the injury to the domestic industry," the Commerce Ministry said in a notification.

The product insulates areas where the electricity flow has to be avoided.

The period of investigation is from January to December, 2011. However, for the purpose of analysing injury, the data of previous three years - 2008-2009, 2009-2010 and 2010-2011 has been considered.

The DGAD has sufficient evidence of dumping of the product from China "to justify initiation of an anti-dumping investigation", the notification said.

Countries initiate an anti-dumping probe to see whether their domestic industries have been hurt because of a surge in cheap imports. As a counter-measure, they impose duties under the multilateral regime of the WTO.

The duty also ensures fair trading practices and creates a level-playing field for domestic producers vis-a-vis foreign producers and exporters resorting to dumping.

Unlike the safeguard duty, which is levied in a uniform way, anti-dumping duty varies from product to product and country to country.

India has initiated 275 anti-dumping investigations between 1992 and March 2012, involving 42 countries.

As on December 2011, measures in respect of 112 cases are in force.

The countries prominently figuring in anti-dumping investigations are China, Korea and Singapore and the major product categories on which anti-dumping duty has been levied are chemicals and petrochemicals, pharmaceutical, steel and consumer goods.

Source : economictimes.indiatimes.com