India: DGAD probes dumping of bonded wood, fibre boards

13/01/2012 12:00 - 387 Views

The Government has initiated a probe into alleged dumping of certain types of organic substances — bonded wood and fibre boards — by China, Indonesia, Malaysia and Sri Lanka with a view to protect domestic players from cheap shipments through the levy of anti-dumping duty. Countries initiate anti-dumping probes to check if the domestic industry has been hurt by a surge in cheap imports.

As a counter-measure, they impose duties as permitted under the multilateral WTO regime. The Directorate-General of Anti-Dumping and Allied Duties (DGAD) has initiated the probe into alleged dumping of “resin or other organic substances — bonded wood or ligneous fibre boards of thickness below 6mm, except insulation boards, laminated fibre boards — originating in or exported from China, Indonesia, Malaysia and Sri Lanka,” a notification by the Commerce Ministry said.

Sufficient evidence

On finding sufficient evidence of dumping of the product by these countries, the DGAD “hereby initiates an investigation into the alleged dumping, and consequent injury to the domestic industry... to determine the existence, degree and effect of alleged dumping and to recommend the amount of anti-dumping measure, which, if levied, would be adequate to remove the injury to the domestic industry,” it said. The investigation is focused on the April 2010-June 2011, period, it added.

Balaji Action Buildwell had filed an application for the probe on behalf of the domestic industry. The applicant accounts for more than 50 per cent of total Indian production of bonded wood and ligneous fibre boards.

India has so far initiated 149 anti-dumping cases against China, which account for over half of such actions taken by the country against foreign nations.

Unlike safeguard duties, which are levied in a uniform way, anti-dumping duties vary from product to product and from country to country.

Source: thehindubusinessline.com