Govt extends anti-dumping duty on caustic soda from China, Korea

The government on Monday extended the imposition of anti-dumping duty by three months on caustic soda imported from China and Korea to guard domestic manufacturers. The duty was extended after considering the recommendations of the commerce ministry’s investigation arm DGTR.

Directorate General of Trade Remedies (DGTR) had requested for extension of the existing anti-dumping duty on the chemical imported from China and Korea. “…the anti-dumping duty imposed under this notification, with respect to China and Korea, shall remain in force up to and inclusive of the 17th November, 2020, unless revoked, superseded or amended earlier,” the department of revenue said in a notification.

The duty was first imposed on August 18, 2015 for five years. 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. According to global trade norms, a country is allowed to impose tariffs on such dumped products to provide a level-playing field to domestic manufacturers.

The duty is imposed only after a thorough investigation by a quasi-judicial body, such as DGTR, in India. The imposition of anti-dumping duty is permissible under the World Trade Organization (WTO) regime. It is aimed at ensuring fair trading practices and creating a level-playing field for domestic producers vis-a-vis foreign producers and exporters.