NEW DELHI:India on Friday imposed anti-dumping duty on phosphoric acid from Korea for five years with a view to guard domestic manufacturers from cheap imports. The duty was imposed after the Commerce Ministry’s investigation arm Directorate General of Trade Remedies (DGTR) concluded in its probe that continued dumping of ‘Phosphoric Acid of all grades and concentrations (excluding Agriculture or Fertilizer grade)’ from Korea was impacting domestic industry.
“The anti-dumping duty (USD 137 per metric tonne) imposed under this notification shall be effective for a period of five years (unless revoked, superseded or amended earlier) from the date of publication of this notification…and shall be paid in Indian currency,” the Department of Revenue said in a notification.
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 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.
Imposition of anti-dumping duty is permissible under the World Trade Organization (WTO) regime.
Korea is a key trading partner of India.
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.