The DGTR, the investigative arm of the Ministry of Commerce, has recommended the imposition of anti-dumping duties on certain aluminum products from China in order to protect domestic manufacturers from cheap imports.

The Trade Remedies Directorate (DGTR) concluded in its investigation that the dumped imports of “Certain Aluminum Flat Rolled Products” from China have had an impact on the domestic industry.

Material injury to the domestic industry was caused by the dumped imports, DGTR said in a notification.

“The Authority therefore considers it necessary to recommend the imposition of the definitive anti-dumping duty … on all imports of the subject goods … originating in or exported from China,” he added.

The DGTR recommended USD 65 per tonne and USD 449 per tonne on imports. The Ministry of Finance makes the final decision to impose the duty.

In international trade parlance, dumping occurs when a country or a company exports an item for less than the price of that product in its domestic market.

Dumping affects the price of this product in the importing country, hitting the margins and profits of manufacturing companies.

According to global trade standards, a country is allowed to impose tariffs on these dumped products in order to provide a level playing field for domestic manufacturers. The duty is only imposed after a thorough investigation by a quasi-judicial body, such as the DGTR, in India.

The imposition of anti-dumping duties is permitted under the World Trade Organization (WTO) regime. India and China are members of this Geneva-based organization, which deals with global trade standards.

The law aims to ensure fair trade practices and to create a level playing field for domestic producers vis-à-vis foreign producers and exporters.

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