The Directorate General of Trade Remedies (DGTR), the investigative arm of the Commerce Ministry, has initiated an anti-dumping investigation into imports of a Chinese rubber product used predominantly in the automotive industry.
The probe follows a complaint lodged by domestic manufacturer Reliance Sibur Elastomers, which alleged that the dumping of Halo Isobutene and Isoprene Rubber (HIIR) from China has adversely impacted the Indian industry.
In a notification, DGTR stated that it had found prima facie evidence of dumping, injury to the domestic industry, and a causal link between the two.
“On the basis of the duly substantiated application filed by the domestic industry, and having satisfied itself, on the basis of the prima facie evidence submitted, substantiating dumping of the product under consideration from the subject countries, injury to the domestic industry and a causal link between such dumping and injury… the authority, hereby, initiates an investigation,” the notification said.
If the investigation confirms that dumping has caused material injury, the DGTR will recommend the imposition of an anti-dumping duty on the imports. The final decision to impose such duties lies with the Ministry of Finance.
The product under investigation is widely used in inner tubes of bicycles, passenger cars, trucks, and industrial and agricultural tires. It also finds application in the manufacture of hoses, seals, tank linings, conveyor belts, protective clothing, and consumer items such as ball bladders for sporting goods.
Anti-dumping investigations are conducted by countries to assess whether domestic industries have been harmed by the influx of low-priced imports.
As a corrective measure, duties are imposed under the multilateral trade rules of the World Trade Organisation (WTO) to ensure fair competition and a level playing field for domestic producers.
Both India and China are members of the WTO. India has previously imposed anti-dumping duties on several products to counter unfairly priced imports from China and other countries.
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