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Govt rejects anti-dumping duty recommendations on import of low-density polyethylene

On Tuesday, June 07, 2022 at 10:02 IST

In a major setback for domestic manufacturers, the government of India has rejected the recommendations to levy anti-dumping duty on the import of low-density polyethylene (LDPE) from Qatar, Saudi Arabia, Singapore, Thailand, United Arab Emirates (UAE), and the United States of America (USA).

In an office memorandum issued on Monday, the Department of Revenue under the Ministry of Finance, said, “The central government, after considering the final findings of the designated authority, has decided not to accept the recommendations to impose anti-dumping duty on the import of LDPE.”

The designated authority i.e. the Directorate General of Trade Remedies (DGTR), under the Union Ministry of Commerce & Industry, had received an application from the country’s premier industry body viz Chemicals and Petrochemicals Manufacturers Association (CPMA) wherein the association had requested initiation of an ADD investigation on the imports of LDPE originating in or exported from Qatar, Saudi Arabia, USA, Thailand, and Singapore. The authority commenced the investigation for the three years period between 2016-17 and 2018-19.

CPMA was not immediately reached for comments. The association, however, had alleged in its application to the DGTR that the dumping of LDPE into India is causing big injury to the domestic producers.

Based on the evidence provided by CPMA, the designated authority started investigations by seeking information from all companies involved in the business to export LDPE to India. The objective of this investigation was to determine the existence, degree, and effect of the alleged dumping of LDPE originating in or exported from the aforementioned exporting countries. Also, the objective of this investigation was to recommend the amount of ADD, which if levied, would be adequate to remove the alleged injury to the domestic industry.

After consulting with all stakeholders including exporters, importers, and Indian producers the DGTR had recommended ADD levy between the US $17 and US$216 on various overseas exporters who were allegedly dumping their goods in India.

While the designated authority could not ascertain evidence of dumping of LDPE from Qatar and Saudi Arabia, substantial proof was gathered which showed dumping was happening in India from the USA, Saudi Arabia, Singapore, and Thailand. With these findings, the designated authority had recommended the imposition of ADD only from the USA, Saudi Arabia, Singapore, and Thailand. Evidence proved that the import of LDPE was undercutting the prices of the domestic industry.


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