Anti-dumping duty on a chemical imported from US, EU, Korea

The government has imposed anti- dumping duty ranging between $0.21 and $0.36 per kg on import of a chemical used by pharma companies from the US, the EU and Korea for five years to protect the domestic industry.

The Revenue Department imposed the anti-dumping duty on 'Methylene Chloride' also known as 'Dichloromethane' on recommendations of the Directorate General of Anti Dumping & Allied Duties (DGAD).

The duty range between $0.21 and $0.36 per kg, said a notification by the Cental Board of Excise and Customs.

After a probe into imports, the DGAD had reached a conclusion that "the domestic industry has suffered material injury on account of subject (Methylene Chloride) imports from the subject countries (European Union, United States of America and Korea)".

It recommended imposition of definitive anti-dumping duty on the import of the chemical.

Earlier, Chemplast Sanmar and Gujarat Fluorochemicals had moved the DGAD seeking imposition of anti-dumping duty in October, 2013. The government had imposed a provisional duty for six months on imports of the chemical.

The duty would be effective for a period of five years (unless revoked, superseded or amended earlier) from the date of imposition of the provisional anti-dumping duty i.e. October 21, 2013.

Methylene chloride is used in the manufacturing of polycarbonate and phenolic resins, rayon yarn, agro, fragrance and pharmaceuticals. It is also used as an extract for edible fats, cocoa, butter and essences.

Countries initiate anti-dumping probes to check if domestic industry has been hurt because of a surge in below- cost imports. As a counter-measure, they impose the duty under the multilateral WTO regime.

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