Moneycontrol
Feb 22, 2016 02:22 PM IST | Source: PTI

Anti-dumping duty may be imposed on a chemical from the US, EU

After conducting a probe following a complaint by Andhra Petrochemicals, the Directorate General of Anti Dumping and Allied Duties (DGAD) has recommended imposition of the levy on imports of 2-Ethyl Hexanol (2-EH) from Malaysia, Korea, the EU, Indonesia, the USA and Taiwan.


India may impose anti-dumping duty ranging between USD 15.55 and USD 127.82 per tonne on import of a chemical from the EU, the US and other regions to protect domestic industry from below-cost shipments.


After conducting a probe following a complaint by Andhra Petrochemicals, the Directorate General of Anti Dumping and Allied Duties (DGAD) has recommended imposition of the levy on imports of 2-Ethyl Hexanol (2-EH) from Malaysia, Korea, the EU, Indonesia, the USA and Taiwan.


After the probe initiated through a November 2014 notice, the DGAD found the product entered the Indian market at prices less than their "normal values and the dumping margins of the dumped imports from these countries are substantial and above de minimis".


"The domestic industry has suffered material injury. The material injury has been caused by the volume and price effects of dumped imports...coupled with disruption in raw material supply during a significant part of the period of investigation," the DGAD said while recommending definitive anti-dumping duties on the imports.


Based on the recommendations, the revenue department may impose the levy.


Andhra Petrochemicals, the sole domestic producer of 2-Ethyl Hexanol, had alleged dumping of the organic chemical and demanded levy of anti dumping duties.


The 2-EH is produced on a massive scale for use in numerous applications such as solvents, flavors, and fragrances and especially as a precursor for production of other chemicals such as emollients and plasticizers.


Main application of 2-Ethyl Hexanol is as a feed stock in the manufacture of low volatility esters.

Anti-dumping measures are taken to ensure fair trade and provide a level-playing field to the domestic industry. They are not a measure to restrict imports or cause an unjustified increase in cost of products.

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