New Delhi: India has initiated a probe into alleged dumping of a chemical, mainly used in photography and medical applications, by China following complaints by domestic players.

Countries initiate anti-dumping probes to check if domestic industry has been hurt because of a surge in cheap imports. As a counter-measure, they impose duties under the multilateral WTO regime.

The Directorate General of Anti-Dumping and Allied Duties (DGAD), under the Commerce Ministry, initiated the investigations into alleged dumping of 'Meta Phenylene Diamine' from China on the basis of an application from the domestic industry.

The DGAD has said there was sufficient evidence "to justify initiation of an anti-dumping investigation," according to a notification by the Commerce Ministry.

The period of investigation is from October 2010 to December 2011. However, for the purpose of analysing injury, the data of previous three years - 2008-2009, 2009-2010 and 2010-2011 would be considered.

The restrictive 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.