India begins dumping probe into chemical imported from China

India has initiated a probe into alleged dumping of a chemical used in dyes and pharma industries from China following a complaint from a domestic player. Gujarat Narmada Valley Fertilizers and Chemicals Ltd has filed an application before the Directorate General of Trade Remedies (DGTR) for anti-dumping investigation on imports of Aniline originating in or exported from China.

According to a notification of the DGTR, it has found evidence of the dumping of the chemical from China. "The authority, hereby, initiates an investigation to determine the existence, degree, and effect of any alleged dumping in respect of the product under consideration," it has said.

If established that dumping has caused material injury to domestic players, the directorate would recommend the imposition of anti-dumping duty on imports of the chemical from the neighboring country. Aniline is also known as Aniline Oil. It is essential for vital industries such as drugs, pharmaceuticals, dyes, and dye intermediates.

The imposition of anti-dumping duty is permissible under the World Trade Organisation (WTO) regime. 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.