Following a complaint from a domestic player, India has begun a probe into alleged dumping of aluminium and zinc coated flat products from China, Vietnam and Korea.
The commerce ministry's arm Directorate General of Trade Remedies (DGTR) initiated the investigation on an application filed by JSW Steel Coated Products. The company asked for an anti-dumping probe and imposition of duty on imports of flat rolled product of steel, plated or coated with alloy of aluminum and zinc, from these countries.
DGTR would recommend imposition of antidumping duty on the imports, if established that dumping has caused material injury to domestic players. In a notification, DGTR said it has found "sufficient evidence" of dumping of the goods by these countries.
"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 antidumping duty, which if levied, would be adequate to remove the injury to the domestic industry," it said. The investigation would cover the period from October 2017 to September 2018. However, the directorate would also cover the data of 2015-18.
The product is used in many applications and sectors like solar power projects, roofing, white goods and appliances, furniture and substrate for colour-coated steel as it offers resistance to corrosion.
In international trade terminology, dumping happens when a country or a firm exports an item at a price lower than the price of that product in its domestic market and impacts price of that product in the exporting country, hitting margins and profits of manufacturing firm.
According to global trade norms, a country is allowed to impose tariffs on such dumped products to provide a level- playing field to domestic manufacturers. The duty is imposed only after a thorough investigation by a quasi-judicial body, like DGTR in India. In its probe, the directorate has to conclude whether the dumped products are impacting domestic industries. Imposition of antidumping 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.