India has started probe into a chemical used in plastic industry from Taiwan and Korea following a complaint of dumping by domestic players.
The Directorate General of Anti-Dumping & Allied Duties(DGAD), the commerce ministry's investigation arm, has found"sufficient evidence" of dumping of "Dioctyl Phthalate" from Taiwan and Korea.
If established that dumping has caused material injury to domestic players, the DGAD would recommend imposition of dutyon import of this chemical from these two countries to guard domestic industry against below-cost imports.
The authority has initiated "an investigation into the alleged dumping, and consequent injury to the domestic industry", DGAD has said in a notification.
KLJ Plasticizers Ltd has filed the application for the dumping probe.
Trending Now: 'Fat Boy' carries heaviest satellite weighing 3,136 kg; historic moment for India
The output of the petitioner accounts for over 50 percent of the Indian production, it said, adding that DGAD has fixed the period of investigation as April 2016 to March 2017(12 months).
Anti-dumping duties are levied to provide a level playing field to local industry by guarding against below-cost imports. DGAD is also probing dumping of several other products such as certain chemicals from different countries.
India is one of the most attractive markets for global producers due to its large middle-class population. Imposition of anti-dumping duty is permissible under the World Trade Organisation (WTO) regime.
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.