India will not impose anti-dumping duty on Chinese Plastic Processing Machines, as the finance ministry has not accepted the recommendations of the directorate general of trade remedies (DGTR) for slapping the duty.
The commerce ministry’s investigation arm DGTR had conducted a probe against the alleged dumping of these machines from China, and in February, it recommended the imposition of the duty. “The central government, after considering the…final findings of the designated authority (DGTR), has decided not to accept the… recommendations,” according to an office memorandum of the Department of Revenue.
While DGTR recommends the duty, the Department of Revenue takes the final decision to impose the duties. In a separate office memorandum, the department said the government has also decided not to accept the recommendations for imposing a similar duty on imports of melamine from the European Union, Japan, Qatar and the United Arab Emirates.
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 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 duty is aimed at ensuring fair trading practices and creating a level-playing field for domestic producers vis-a-vis foreign producers and exporters.