Govt initiates anti-dumping duty on caustic soda from Japan, Iran, Qatar

Govt initiates anti-dumping duty on caustic soda from Japan, Iran, Qatar

The government on Thursday decided to initiate anti-dumping duty on caustic soda from Japan, Iran, Qatar and Oman following the request of Alkali Manufacturers Association of India (AMAI).
Local producers namely, DCW, Grasim Industries, Gujarat Alkalies and Chemicals, SIEL Chemical Complex have written to the government seeking relief against cheap imports.
They’ve alleged that material injury to the Domestic industry is being caused due to dumped imports from Japan, Iran, Qatar and Oman, and has requested for imposition of anti- dumping duty on the imports of Caustic Soda from Japan, Iran, Qatar and Oman.

The product under consideration in the petition is Caustic Soda or Sodium Hydroxide, in all forms. Caustic Soda, also known as NaOH or Sodium Hydroxid, is a soapy, strongly alkaline odorless liquid widely used in diverse industrial sectors, either as a raw material or as an auxiliary chemical. Caustic Soda is produced in two forms, lye and solids. Solids can be in the form of flakes, prills, granules or any other form.
Earlier, the government extended the imposition of anti-dumping duty by three months on caustic soda imported from China and Korea to guard domestic manufacturers.

The duty was extended after considering the recommendations of the commerce ministry’s investigation arm DGTR.
Directorate General of Trade Remedies (DGTR) had requested for extension of the existing anti-dumping duty on the chemical imported from China and Korea.
The duty was first imposed on August 18, 2015, for five years.
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.
The imposition of anti-dumping duty is permissible under the World Trade Organization (WTO) regime. It is aimed at ensuring fair trading practices and creating a level-playing field for domestic producers vis-a-vis foreign producers and exporters.

Disclaimer –
This document is meant for the recipient only for use as intended and not for circulation. This document should not be reproduced or copied or made available to others. The information contained herein is from the public domain or sources believed to be reliable. While reasonable care has been taken to ensure that information given is at the time believed to be fair and correct and opinions based thereupon are reasonable, due to the very nature of research it cannot be warranted or represented that it is accurate or complete and it should not be relied upon as such. Also above note is not a recommendation to Buy or SELL and is only a view based on facts and figures and we will be in no way responsible for any losses incurred by anyone who uses this information to either trade or invests securities mentioned herein.