The commerce ministry's investigation arm DGTR has recommended the imposition of anti-dumping duty on Vitamin C, used by pharmaceutical firms for medicine production, from China to guard domestic manufacturers from cheap imports.
The Directorate General of Trade Remedies (DGTR) has concluded in its probe that the imports from China are entering the domestic market at price below the level of the selling price, and even the cost of sales.
The domestic industry has been impacted due to the dumped imports, DGTR has said in a notification.
"Accordingly, definitive anti-dumping duty...is recommended to be imposed for five years from the date of the notification to be issued by the Central Government, on all imports of goods...originating in or exported from China," it added.
The DGTR has recommended $3.2 per kg and $3.55 per kg duty 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.
