In an effort to protect domestic industries from cheap imports, India has decided to impose anti-dumping duty on at least four chemicals imported from China.
The Central Board of Indirect Taxes and Customs and the Department of Revenue said the duty would be levied for a period of five years on PEDA (which is used in herbicides); Acetonitrile (used in pharma sector); Vitamin-A Palmitate; and Insoluble Sulphur.
The duties are said to have been imposed following recommendations from the Directorate General of Trade Remedies (DGTR), an arm of the commerce ministry, to guard domestic players from unfairly priced imports from the neighbour.
On PEDA, the duty will range from USD 1,305.6 to USD 2017.9 per tonne; while on Acetonitrile, which is imported from China, Russia, and Taiwan, a duty of up to USD 481 per tonne has been imposed.
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The Centre has also imposed a duty of up to USD 20.87 per kg duty on Vitamin-A Palmitate imported from China, European Union and Switzerland; and up to USD 358 per tonne on import of Insoluble Sulphur, which is used in the tyre industry and is imported from China and Japan.
Countries often conduct anti-dumping probes to create a level playing field for domestic producers vis-à-vis foreign players.
As a countermeasure, countries impose these duties under the multilateral regime of the Geneva-based World Trade Organisation (WTO). Both India and China are members of the multilateral organisations that deal with global trade norms.
India is trying to wean away from Chinese imports as the country’s trade deficit with China widened to USD 99.2 billion during 2024-25.
In the last fiscal, India's exports to China contracted 14.5 per cent to USD 14.25 billion as against USD 16.66 billion in 2023-24. The imports, however, rose by 11.52 per cent in 2024-25 to USD 113.45 billion against USD 101.73 billion in 2023-24.