Govt not to extend anti-dumping duty on Chinese paracetamol; says no proof to establish imports hurt domestic industry

  • DGTR has said that it does not recommend continuation of the anti-dumping duty on the imports of paracetamol from China

  • The finance ministry first imposed anti-dumping duty on the product in 2002, then extended in 2007 and then again in October 2013 for five years

  • It said the anti-dumping duty

New Delhi: The government will not extend anti-dumping duty on imports of Chinese paracetamol, used in medicines, as the domestic industry has failed to provide evidence that the expiry of the levy would result in dumping.

After concluding its probe, the commerce ministry's investigation arm for dumping of goods, the directorate general of trade remedies (DGTR) has said that it does not recommend continuation of the anti-dumping duty on the imports of paracetamol from China.

"The authority holds that domestic industry failed to provide any satisfactory evidence that the expiry of the said anti-dumping duty is likely to lead to continuation or recurrence of dumping and injury to the domestic industry," the DGTR said in a notification.

 Govt not to extend anti-dumping duty on Chinese paracetamol; says no proof to establish imports hurt domestic industry

Representational image. Reuters.

The finance ministry has first imposed anti-dumping duty on the product in 2002, then extended in 2007 and then again in October 2013 for five years.

The anti-dumping duty was ended in October 2018. Before expiry of this duty, the domestic industry in May 2018 approached the directorate to seek continuation of the levy.

The application for continued imposition of the duties was filed by Farmson Pharmaceuticals Gujarat and Krishna Pharmaceuticals.

Due to the initiation of the probe, in August 2018, the validity of the duty was extended by the government up to 24 May, 2019.

"Evidence on record does not indicate that the dumped imports from China will lead to injury to the domestic industry," it said, adding that the imports from China have remained at insignificant level throughout the injury period (2014-18).

It said the anti-dumping duty "was in force since September 2001 and the condition of domestic industry has improved. Therefore, the duty has served its intended purpose".

Countries carry out anti-dumping probe to determine whether their domestic industries have been hurt because of a surge in cheap imports.

As a counter measure, they impose duties under the multilateral regime of the World Trade Organization.

The duty is aimed at ensuring fair trade practices and creating a level-playing field for domestic producers with regard to foreign producers and exporters.

 

 

To keep watching India’s No. 1 English Business News Channel – CNBC-TV18, call your Cable or DTH Operator and ask for the Colors Family Pack (inclusive of 24 channels), available for Rs. 35/- per month, or subscribe to the channel for Rs. 4/- per day.

To keep watching the Leader in Global Market & Business News – CNBC-TV18 Prime HD, call your Cable or DTH Operator and ask for the Colors Family HD Pack (inclusive of 25 channels), available for Rs. 50/- per month, or subscribe to the channel for Rs. 1/- per day.

Updated Date: Jan 30, 2019 17:39:44 IST