The Centre has forced anti-dumping duty of USD163.90-207.72 per ton on Chinese chemical used to make detergents for the next five years to protect the growth of domestic players from getting hindered from cheap imports from China.
India has taken the move following the complaint filed by Gujarat Credo Mineral Industries and Chemicals India to Directorate General of Trade Remedies (DGTR) regarding how the import of the inexpensive chemical is hitting the domestic industry hard. DGTR is the investigation arm of the Commerce Ministry.
Following a probe, the DGTR said that the dumped imports were resulting into “positive dumping margin” and causing material injury to the domestic industry, and therefore suggested imposition of a firm anti-dumping duty.
In a notification, the Central Board of Indirect Taxes and Customs (CBIC) announced the duty imposition on Zeolite 4A (detergent grade), following the recommendations of DGTR, which had run a probe in this regard. It added that the duty in the range of $163.90-207.72 per ton of the chemical is going to stay for coming five years.
Detergent-grade Zeolites are mainly water-softener compounds, which are used to eliminate magnesium and calcium ions from hard water. Soft water needs less amount of soap for cleaning, as soap doesn’t get wasted in mopping up calcium ions, and is primarily used as a builder in detergents.
With this duty, the authorities aim to ensure fair trading practices and wants to form a level-playing field for domestic as well as foreign producers. Previously, India has already imposed anti-dumping duty on many products to restrict cheap imports from different parts of the world, like China. In case of China, India has a huge fear of growing trade deficit, as the deficit has mounted to $63.12 billion in 2017-18 from $51.11 billion in the previous fiscal.
Many countries conduct anti-dumping probe to find out if their domestic industries are getting affected due to an increase in below-cost imports or not. To counter the same, they impose duties following the multilateral regime of WTO.