Government probes dumping of chemical amoxicillin used in pharma companies from China

NEW DELHI: The Centre has initiated a probe into dumping of amoxicillin, used in pharmaceutical industry, from China to protect domestic industry from cheap imports.

The Directorate General of Anti-Dumping and Allied Duties ( DGAD) has prima facie found "sufficient evidence" of dumping of the chemical from China.

Aurobindo Pharma had filed an application before the DGAD for initiation of anti-dumping investigation and imposition of the duty concerning imports of amoxicillin from the neighboring country.

"The authority hereby initiates an investigation into the alleged dumping and consequent injury to the domestic industry... to determine the existence, degree and effect of alleged dumping and to recommend the amount of anti-dumping duty, which if levied, would be adequate to remove the injury to the domestic industry," DGAD said in a notification.

The period of investigation is from October 2014 to December 2015 (15 months). It will also cover the period of 2012-13, 2013-14 and 2014-15.

After concluding the investigation, the DGAD under the Commerce Ministry would recommend the duty and the Finance Ministry would impose that.

Countries start anti-dumping probes to determine whether their domestic industries have been hurt because of a surge in below-cost imports. As a counter measure, they impose duties under the multilateral regime of WTO.

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.

India has already imposed anti-dumping duty on several products to tackle cheap imports from some countries, including China.