Anti-dumping duty likely on imports of soda ash

NEW DELHI: India may impose an anti-dumping duty of up to USD 38.79 per tonne on a chemical, used mainly in detergents, imported from seven places including China, EU, Pakistan and the US, to protect domestic players against cheaper imports.

The Directorate General of Anti-dumping and Allied Duties (DGAD) has recommended imposition of the duty on imports of 'soda ash', the Commerce Ministry said in a notification dated February 17.

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

Alkali Manufacturer's Association of India had filed a petition for imposition of an anti-dumping duty on behalf of the domestic industry.

The duty ranged between USD 2.38 per tonne and USD 38.79 per tonne, it said.

The DGAD, which is under the Commerce Ministry, in its recommendations said that the chemical has been exported to India below its normal value from China, European Union (EU), Kenya, Iran, Pakistan, Ukraine and the US.

"... the Authority is of the view that imposition of definitive anti-dumping duty is required to offset the dumping and injury," it added.

Soda ash is an essential ingredient in the manufacturing of detergents, soaps, cleaning compounds, float glass, container and specialty glasses and other industrial chemicals. It is also widely used in textiles, paper, metallurgical industries and desalination plants.

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

The country has already imposed anti-dumping duty on imports of fabric, yarn, nylon tyre cord and several chemicals.

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 cheap imports.

As a counter-measure, they impose duties under the multilateral WTO regime.