The commerce ministry recommended imposition of anti-dumping duty on a certain type of rubber imported from China, European Union, Japan, and Russia, in order to guard domestic manufacturers from cheap inbound shipments. Directorate General of Trade Remedies (DGTR) has recommended the duty after concluding in its probe that ”Acrylonitrile Butadiene Rubber” from these regions has been exported at dumped prices into India, which impacted the domestic industry.

“The authority recommends imposition of definitive anti-dumping duties on import of subject goods originating in or exported from subject countries,” DGTR has said in a notification.

The recommended duty is the difference between the landed value of the product and USD 2,086 per tonne.
Apcotex Industries Ltd had filed an application before the directorate for imposition of anti-dumping duty on the imports. It had alleged that dumping of the product from these countries are impacting the domestic industry.

The product is used in the manufacture of various rubber articles where resistance to oil, abrasion and heat applications are involved, such as oil seals, hoses, automotive products, gaskets, rice dehusking rolls, printers, and fabrics.

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 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.
Imposition of anti-dumping duty is permissible under the World Trade Organization (WTO) regime.
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.

Source: economic Times