Government may slap anti-dumping duty on a bulk drug from EU firms

NEW DELHI: The government may impose anti-dumping duty of up to USD 9.03 per kg on a raw material that is imported from a few European countries and is used in manufacture of drugs, to protect domestic players.


In its findings, the Directorate General of Anti-dumping and Allied Duties ( DGAD) has recommended imposition of the duty on imports of 'Bulk Drug Cefadroxil Monohydrate' from European Union, the Commerce Ministry said in a notification.

Bulk drug Cefadroxil Monohydrate is an active pharmaceutical ingredient (a raw material) used for the manufacturing of pharmaceutical formulations. This bulk drug is used to manufacture formulations, which are consumed by the patients on the prescription of the doctors.

The Directorate's recommendation comes on the basis of its findings that increased imports have caused "material injury" to the domestic industry, it said.

The DGAD, which is under the Commerce Ministry, in its recommendations has also said that the chemical has been exported to India below its normal value from the European Union.

"...the Authority is of the view that imposition of definitive anti dumping duty is required to offset dumping and consequent injury...the Authority recommends imposition of definitive anti-dumping...so as to remove the injury to the domestic industry," it added.

Anti-dumping duty is recommended by the Commerce Ministry, while the Finance Ministry imposes the same.

"It is noted that the imports from EU have recorded a significant increase in absolute terms during the injury period from 124.19 metric tonnes in 2007-08 to 287.25 metric tonnes during the period of investigation (April 2010 to September 2011)," it said.

Unlike safeguard duties, which are levied in a uniform way, anti-dumping duties vary from product to product and from country to country.

Countries initiate anti-dumping probes to check if domestic industry has been hurt because of a surge in below- cost imports. As a counter-measure, they impose duties under the multilateral WTO regime.