Dumping duty on goods from Germany, Korea extended

20/04/2009 12:00 - 648 Views

NEW DELHI: The government has extended the special duty imposed on sodium hydrosulphite imports from Germany and Korea by five years.

The move will impact user industries, such as wine, fine writing papers, leather goods, coloured fabrics, as these will have to pay more for the product.

Indian manufacturers, such as TCP, Auxi Chem, will benefit from the move. Apex body for indirect taxes Central Board of Excise and Customs has notified the levy of anti-dumping duty — an additional duty imposed on a product exported at a price lower than that in the exporting country and which causes injury to the local producers of the importing country — is equivalent to the extent of dumping.

The anti-dumping duty would be levied at a rate equivalent to difference between $1,034 per metric tonne and the landed value of imported goods. The duty was first imposed in 2003.

The Directorate General of Anti-dumping and Allied Duties (DGAD) recommended imposition of duty for an additional five years.

In its final findings on March 17, 2009, the authority had concluded that sodium hydrosulphite was entering Indian market at dumped prices from Germany and Korea and causing injury to the domestic industry. Such imports would continue at dumped prices, if the duty is not extended.

Though, the domestic industry had marginally improved its performance in terms of capacity, production and sales, its profitability had deteriorated during the period of investigation and its situation continues to be fragile, the CBEC notification said.

“Dumped imports from Germany continued to cause substantial injury to the domestic industry and the likelihood of dumping from Korea RP was lurking above the domestic industries threatening to cause substantial injury in the event of revocation of the anti-dumping duty,” the notification said.

Source: economictimes.indiatimes.com