The government has initiated an investigation into alleged dumping of a chemical, mainly used in explosives, by China to protect domestic players from cheaper imports.

The Commerce Ministry's designated authority, the Directorate General of Anti-Dumping and Allied Duties (DGAD), has started the probe into alleged dumping of 'Sodium Perchlorate' from the neighbouring country.

The main function of sodium perchlorate is to manufacture explosives for mining, the Commerce Ministry said in a notification.

"Calibre Chemicals Pvt Ltd has filed an application before the Authority ... for initiation of anti-dumping duty investigation concerning imports of Sodium Perchlorate originating in or exported from China," it said.

The DGAD considers that it has sufficient evidence of dumping of the product from China "to justify initiation of an anti-dumping investigation".

The period of investigation is from April, 2011 to March, 2012. However, for the purpose of analysing injury, the data of previous three years of 2008-2009, 2009-2010 and 2010-2011 would also be considered, it added.

After the completion of probe, the ministry would recommend the duty and the finance ministry would impose it.

The DGAD is already probing dumping of another chemical from China.

Countries initiate anti-dumping probe to see whether their domestic industries have been hurt due to cheaper imports. As a counter-measure, they impose duties under the multilateral regime of the WTO.

The duty also ensures fair trading practices and creates a level-playing field for domestic producers vis-a-vis foreign producers and exporters resorting to dumping.

Unlike the safeguard duty, which is levied in a uniform way, anti-dumping duty varies from product to product and country to country.

India has initiated 275 anti-dumping investigations between 1992 and March 2012, involving 42 countries.

The countries prominently figuring in anti-dumping investigations are China, Korea and Singapore and the major product categories on which anti-dumping duty has been levied are chemicals and petrochemicals, pharmaceutical, steel and consumer goods.

Source: http://articles.economictimes.indiatimes.com/2012-07-20/news/32764286_1_...