India plans to continue anti-dumping duty on Chinese Synthetic Rubber

Indian commerce ministry has recommended for continuation of anti-dumping duty on a Chinese synthetic rubber for five more years with a view to guard domestic players from cheap imports.

In a notification, the ministry's investigation arm Directorate General of Trade Remedies (DGTR) has said there is a "likelihood" of continuation of dumping of Fluoroelastomer and injury to Indian players if the existing anti-dumping duties are allowed to cease."The authority recommends imposition of definitive anti-dumping duty...for five years," it has said.

The directorate has recommended the duty in the range of USD 1.04 per Kg and USD 8.86 per kg. The finance ministry takes the final decision to impose this duty.

In its probe, the DGTR has concluded that "there is sufficient evidence to indicate that the cessation of the duty at this stage will lead to continuation of dumping and injury to the domestic industry".

The revenue department had imposed the duty in January last year for 18 months till July 2020. It was further extended till October 27 this year.

Gujarat Fluorochemicals had filed an application on behalf of Indian industry for sunset review of existing duties on imports of the product from China. Following this, the DGTR had conducted the probe.

Fluoroelastomers is a kind of synthetic rubber. It is also called as "rubber king". It is used in hydraulic seals, check valve balls, electrical connectors, automotive use in shaft seals, manifold gaskets and fuel tank bladder.

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.

The imposition of anti-dumping duty is permissible under the World Trade Organization (WTO) regime. India and China are members of this Geneva-based organisation, which deals with global trade norms.

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.