The facts about anti-dumping duty
There are a number of domestic and western manufacturers who are producing chemical products such as melamine etc. Import and Export are both at a full-time high due to the large scale demand for all sorts of chemicals. Now, this is majorly because of the fact that across a wide variety of industries, chemicals are being used in almost equal quantities.
This means that either chemical cannot be manufactured in such quantities or not all the chemicals required cannot be produced in the same country where the factory exists. This is where import and export of chemicals is factored in. Not only are a number of chemical companies in India exporting a number of different chemicals to countries outside but countries such as Japan and the entire EU are importing to India as well.
But, recently, India has observed that due to the dumping of a number of substandard chemicals used in either beauty products or even other things such as medicines, the market for Indian produce has seen a rapid decline. How does one deal with such a scenario? This is where the anti-dumping law came into place to nurture chemical export from India.
What is anti-dumping all about?
Following the orders of the Directorate General of Anti-Dumping and Allied Duties (DGAD) in the Department of Commerce, the Revenue Department had announced in 2012 that they would be levying heavier custom duty and tax on incoming shipments from countries such as Iran, Indonesia, Japan and the whole of EU. The report said that due to the involvement of large scale players such as the mentioned countries, the playing field could not be leveled.
The Indian manufacturers were not being able to meet the scale or the volume of operations due to which foreign exports were largely overcoming Indian markets. As a result, the Indian chemical market was seeing a decline and Indian chemicals in the foreign market were not grabbing as much attention. This is why the Indian authorities to boost the existing situation and bring about a kind of equilibrium.
The above mentioned countries were involved in a practice called dumping which involves bringing an excess of substandard chemicals such as Melamine. Melamine is used in beauty products as well as used to produce a number of different utensils etc.
The abundance of such below par chemicals in the market meant that the foreign importers could afford to sell them at lower prices. Further, this would affect the domestic industry and their growth. So, India decided to impose a higher duty on these countries to help out all chemical companies in India.
Some facts about Anti-Dumping Duty
- The duty is aimed at ensuring fair trade practices
- This duty was first imposed on Melamine back in 2012
- Anti-dumping duty varies from product to product and country to country
- Once imposed, the duty is retained for 5 years
- India had undertaken over 27d missions between 1992 and 2012
The anti-dumping duty and anti-dumping investigations spread across the vast chemical industry. However, if you are looking to source chemicals locally or for chemical export from India, then rely on manufacturers such as KPL International.
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