India has launched an anti-dumping investigation into imports of Resorcinol, a chemical widely used in tyre manufacturing and rubber-based products, from China and Japan, according to a notification issued by the commerce ministry.
The probe has been initiated by the Directorate General of Trade Remedies (DGTR) following a petition filed by Atul Ltd, which alleged that low-priced imports of the chemical from the two countries are causing significant harm to the domestic industry.
In its notification, the DGTR stated that it had examined the application and found sufficient prima facie evidence suggesting the existence of dumping, injury to the domestic industry, and a causal link between the two. Based on this preliminary assessment, the authority has formally commenced an anti-dumping investigation into the imports.
"On the basis of the duly substantiated application filed by the applicant and having satisfied itself, on the basis of the prima facie evidence submitted by the applicant, regarding dumping of the subject goods, the authority hereby initiates an anti-dumping investigation," the notification said.
Also read: Banks' demand muted at RBI's VRR auction
As part of the inquiry, the DGTR will examine whether Resorcinol exported from China and Japan is being dumped in the Indian market, determine the extent of such dumping, and assess its impact on domestic manufacturers. Should the investigation conclude that the imports have caused material injury to local producers, the DGTR may recommend the imposition of anti-dumping duties on the product. The final decision regarding the levy rests with the finance ministry.
Resorcinol is an important industrial chemical used primarily as an intermediate in the production of tyres, rubber products, and resin bonding applications. It also finds use in manufacturing specialised wood adhesive resins, dyes, pharmaceutical products, and certain cosmetic formulations.
Anti-dumping investigations are undertaken by countries to assess whether domestic industries have suffered due to a surge in imports sold at unfairly low prices. Such practices can distort competition and adversely affect local manufacturers.
To counter these effects, governments may impose anti-dumping duties in accordance with rules established under the multilateral framework of the Geneva-based World Trade Organization. These measures are intended to promote fair trade practices and provide a level playing field for domestic producers competing against foreign exporters.
India, China, and Japan are all members of the WTO and are bound by its trade regulations. Over the years, India has imposed anti-dumping duties on a range of products imported from several countries, including China, as part of efforts to protect domestic industries from unfair trade practices and predatory pricing.
Follow us
