India has imposed anti-dumping duty on imports of flexible slabstock polyol originating in or exported from Saudi Arabia and United Arab Emirates, ranging between $101.8 and $235.02 per metric tonne, for a period of five years.
The Central Board of Indirect Taxes and Customs issued a notification to the effect on Monday, following recommendations of the Directorate General of Trade Remedies which suggested imposition of definitive anti-dumping duty on imports, in order to remove injury to the domestic industry.
“The designated authority in its final findings has come to the conclusion that the product under consideration has been exported to India from the subject countries below its associated normal value, thus resulting in dumping,” the Board said citing DGTR’s findings.
It added that the domestic industry had suffered material injury due to dumping of the product from Saudi Arabia and United Arab Emirates and ‘material injury’ had been caused.
“The anti-dumping duty imposed under this notification shall be levied for a period of five years,” the Board said.
Flexible slabstock polyol is a key raw material for making polyurethane products. It is used to make slabstock foam and polyurethane foam mattresses.
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 price of products in the importing country and adversely affects 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. India and Vietnam are members of the 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.