The commerce ministry's investigation arm DGTR has recommended the continuation of anti-dumping duty on certain steel products imported from China, Malaysia and Korea for five more years to guard domestic players from cheap inbound shipments. The Directorate General of Trade Remedies (DGTR) has recommended the continuation of the duty after it concluded in its probe that there is continued dumping of 'Hot Rolled Flat Products of Stainless Steel – 304 grade' from these three countries, and the imports are likely to enter the Indian market at dumped prices in the event of revocation of existing duties.
"Having concluded that there is likelihood of continuation/recurrence of dumping and injury if the existing anti-dumping duties are allowed to cease, the authority is of the view that continuation of duty is required on the imports…Accordingly, definitive anti-dumping duty…is recommended to be imposed for five years," according to the notification of the directorate. The directorate has suggested the duty as USD 160 per tonne, USD 255 per tonne and USD 155 per tonne for these three nations. The finance ministry will take the final decision to impose these duties.
Earlier in June 2015, the duty was slapped for five years. Jindal Stainless (Hisar) Ltd and Jindal Stainless Ltd had filed anapplication on behalf of the domestic industry before the DGTR, alleging likelihood of continuation or recurrence of dumping of the goods from these countries. They had requested for review, and continuation of the present anti-dumping duties, applicable to the imports.
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 duty is aimed at ensuring fair trading practices and creating a level-playing field for domestic producers vis-a-vis foreign producers and exporters.
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