The commerce ministry's investigation arm DGTR (Directorate General of Trade Remedies) has recommended an extension of the existing anti-dumping duty imposed on the imports of axle for trailers from China.

The anti-dumping duty on the product was imposed by the finance ministry in November 2016.

"Recommends extension of the existing anti-dumping duty on imports of axle for trailers, originating in or exported from China," DGTR has said in a notification.

The recommendation was made by the directorate after conducting a probe into an alleged circumvention of the anti-dumping duty imposed on the imports.

It had received information from Commissioner of Customs (imports) Nhava Sheva that the duty is being circumvented as the product is being imported in CKD (Complete Knock Down)/ SKD (Semi-Knock Down) form and then assembled as axle for trailers.

In a separate notification, the directorate has recommended imposition of the duty on Caprolactum, used in the nylon industry, to guard domestic manufacturers from cheap imports from Russia, Korea, the European Union, and Thailand.

The recommended duty ranges between $67.79 per tonne and $560.82 per tonne.

Anti-dumping duty was also suggested on imports of Hydrofluorocarbon (HFC) Blends, used in the refrigeration and air conditioning sector, exported from China into India.

The recommended duty ranges from $1553.45 per tonne to $2250.56 per tonne.

Further, the DGTR also recommended the duty on Silicone Sealants, used in the green energy sector, from China.

The recommended duty ranges between $396.99 per tonne and $738.73 per tonne.

In international trade parlance, dumping happens when a country or a firm exports an item at a price lower than the price in its domestic market.

Dumping impacts the price of that product in the importing country, hitting the margins and profits of manufacturing firms.

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.