Govt Mulls Anti-Dumping Duty on Japan, Thailand Acetone Imports.

NEW DELHI: India is likely to impose anti- dumping duty of up to $ 94.96 per tonne on acetone imports from Japan and Thailand to protect domestic industry.

The Directorate General of Anti-Dumping and Allied Duties (DGAD), a nodal investigation agency under the Commerce Ministry, has found that acetone -- a chemical used by drug-makers -- is exported by the two countries to India at a price below its normal value, an official said.

"... The authority (DGAD) is of the view that imposition of final duty is required to offset dumping and injury, pending completion of the investigation," DGAD said.

The DGAD has recommended the imposition of an anti-dumping duty of between $ 85.85 and $ 94.96 per tonne on acetone imports from Japan and Thailand.

However, a final call on imposition of the anti-dumping duty will be taken by the Finance Ministry, following which a formal notification will be made.

Acting on complaints from the domestic industry, the DGAD had initiated a probe into the dumping of acetone by Japan and Thailand.

The period of investigation was October, 2008-June, 2009. During these nine months, imports from Japan increased to 12,813 tonnes from 8,399 tonnes in 2008-09. Similarly, acetone imports from Thailand rose to 7,780 tonnes from 1,914 tonnes in 2008-09.

Unlike safeguard duties, which are levied in a uniform manner, anti-dumping duty varies from product-to-product and country-to-country.

Countries initiate anti-dumping probes to check if their domestic industries have been hurt because of a surge in cheap imports.

As a counter-measure, they impose duties, as provided for under the multilateral regime of the WTO . Anti-dumping measures are taken to ensure fair trade and provide a level playing field to domestic players. It is not a measure to restrict imports or cause an unjustified increase in the cost of products.

Source : economictimes.indiatimes.com