Govt starts dumping probe against Chinese chemical imports.

New Delhi: India has initiated anti-dumping probe on a chemical, used mainly in dye and pharmaceutical industries, imported from China to protect the domestic players from cheap shipments.

Acting on the complaints of some domestic industries, the Commerce Ministry has initiated the investigation to assess the impact of imports of 'Para nitroaniline' on the local players.

The complainant said the dumping was causing injury to the domestic industry.

The Directorate General of Anti-Dumping and Allied Duties (DGAD) is conducting the probe, an official said.

"The Authority (DGAD)... hereby initiates an investigation into the alleged dumping and consequential injury to the domestic industry... to determine the existence, degree and effect of alleged dumping and to recommend the amount of anti-dumping duty...," the DGAD said.

The period of investigation was January 2009 to December, 2009.

While the Commerce Ministry recommends anti-dumping duty, the Finance Ministry imposes it.

The principle of anti-dumping duty is to prevent dumping and to ensure fair trading practices and to create a level playing field for domestic producers vis-a-vis foreign producers and exporters resorting to dumping.

Source : zeenews.com