India clamps down on Chinese products, imposes anti-dumping duty for five years

India has imposed anti-dumping duties on three Chinese products, namely wheel loaders, gypsum tiles, and industrial laser machinery for five years. The move aims to protect local manufacturers from the impact of inexpensive imports originating from China. The decision to impose these duties follows the recommendations of the Directorate General of Trade Remedies (DGTR), an investigative arm of the commerce ministry. According to separate probes conducted by the DGTR, these products were found to be exported to India at prices below their normal value, leading to dumping and causing material injury to the domestic industry. According to separate notifications of the Central Board of Indirect Taxes and Customs (CBIC) issued last month, the duties have been imposed on gypsum board/tiles with lamination at least on one side. Such duties have also been imposed on industrial laser machines, in fully assembled, Semi Knocked Down (SKD) or Completely Knocked Down (CKD) form, used for cutting, marking, or welding operations; and wheel loaders imported in the form of Completely Built Unit (CBU), or SKD. The anti-dumping duties imposed under these notifications will be levied for five years unless revoked, superseded or amended, according to the notifications. Such duties have also been imposed on gypsum tiles manufactured by some companies in Oman. Earlier, it was imposed on toughened glass for home appliances; and certain types of flax yarn from China. While DGTR recommends levying the duty, the finance ministry imposes it. Countries initiate anti-dumping probes to determine if a surge in below-cost imports has hurt the domestic industry. As a countermeasure, they impose duties under the multilateral WTO regime. Anti-dumping measures ensure fair trade and provide a level playing field to the domestic industry. India and China are members of the Geneva-based World Trade Organisation (WTO). India’s exports to China during 2022-23 stood at USD 15.3 billion while imports stood at USD 98.5 billion, leaving a trade deficit of USD 83.2 billion.