India: DGTR recommends anti-dumping duty on certain ‘Flat-Rolled Products of Aluminium' from China

The Ministry of Commerce, Govt. of India's investigation arm DGTR has recommended the imposition of anti-dumping duty on certain aluminium products from China to safeguard domestic producers from cheap imports.

The dumped imports of 'Certain Flat-Rolled Products of Aluminium' from China have impacted the domestic aluminium industry, as concluded in its probe by the Directorate General of Trade Remedies (DGTR).

DGTR notified by quoting: “The material injury suffered by the domestic industry has been caused by the dumped imports.”

"The Authority, therefore, considers it necessary to recommend imposition of the definitive anti-dumping duty on all imports of the subject goods originating in or exported from China," it added.

The DGTR has recommended $65 per tonne and $449 per tonne on imports. However, the finance ministry takes the final call to impose the duty.

In the international trade articulation, 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 of products impacts the price of that particular product in the country of import, smacking the margins and profits of the manufacturing industries.

The global trade norms attribute: “A country is allowed to impose tariffs on such dumped products to provide a level-playing field to domestic manufacturers.”

The anti-dumping 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. India and China are members of this Geneva-based organisation, which deals with global trade norms.

The duty is purposed towards ensuring fair trade practices and constituting a clear stage for domestic producers facing foreign producers and exporters.