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India Imposes Anti-Dumping Duties On These 5 Chinese Products

India Imposes Anti-Dumping Duties On These 5 Chinese Products

  • 23.03.2025 12:20
  • ndtv.com
  • Keywords: Dumping, Imports

India imposed anti-dumping duties on five Chinese products, including Soft Ferrite Cores and aluminum foil, after they were exported to India at below-normal prices. The move aims to protect domestic industries from cheap imports under World Trade Organization rules.

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Press Trust of India

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The Press Trust of India is a wire service that provides news content to various media outlets. In this article, they are the source of the information regarding the anti-dumping duties imposed on Chinese products.

Central Board of Indirect Taxes and Customs

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This is a government agency responsible for indirect taxes and customs in India. They issued notifications regarding the anti-dumping duties.

Department of Revenue

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Part of the Indian government, this department handles revenue-related matters including customs and taxes. It works alongside the Central Board of Indirect Taxes and Customs in implementing these trade measures.

DGTR (directorate general of trade remedies)

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This is an investigative arm of India's commerce ministry that recommends anti-dumping actions. Their role was crucial in the decision-making process for imposing these duties.

World Trade Organization (WTO)

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The WTO is an international body that oversees global trade rules, including the multilateral regime under which anti-dumping measures are implemented. India's actions align with WTO guidelines to ensure fair trade practices.

Context

Analysis of Anti-Dumping Duties Imposed by India on Chinese Products

Key Facts and Data Points

  • Products Affected: Five Chinese products:

    • Soft Ferrite Cores
    • Certain thickness of vacuum insulated flask
    • Aluminium foil
    • Trichloro Isocyanuric Acid
    • Poly Vinyl Chloride Paste Resin

  • Duties Levied:

    • Soft Ferrite Cores: Up to 35% duty on CIF value.
    • Vacuum Insulated Flask: USD 1,732 per tonne anti-dumping duty (levy ranges from USD 89 to USD 707 per tonne).
    • Aluminium Foil: Provisional duty of up to USD 873 per tonne for six months.
    • Trichloro Isocyanuric Acid: Duty range of USD 276 to USD 986 per tonne (applied to imports from China and Japan).
    • Poly Vinyl Chloride Paste Resin: Levy ranges from USD 89 to USD 707 per tonne, applicable to imports from multiple countries including China, Korea RP, Malaysia, Norway, Taiwan, and Thailand.

  • Duration of Duties:

    • Five years for Soft Ferrite Cores, vacuum insulated flask, and Trichloro Isocyanuric Acid.
    • Six months provisional duty on aluminium foil.

  • Investigation Authority: Directorate General of Trade Remedies (DGTR) under the commerce ministry recommended these duties.

  • WTO Context: Anti-dumping probes conducted under the multilateral regime of the World Trade Organization (WTO).

Market and Business Implications

  • Domestic Protection: The move aims to protect Indian domestic industries from cheap imports, particularly from China.

    • This could lead to increased production costs for Chinese exporters and reduced market share in India.

  • Trade Dynamics:

    • India-China trade deficit stood at USD 85 billion in 2023-24.
    • The duties may escalate tensions between the two countries, given their significant trade relationship.

  • Competitive Landscape:

    • Indian manufacturers may gain a competitive edge with reduced foreign competition.
    • Other exporters (e.g., China, Japan, Korea RP, Malaysia, Norway, Taiwan, Thailand) could face challenges in maintaining market share for certain products.

  • Long-Term Effects:

    • The measures could lead to re-routing of trade flows and strategic shifts in supply chains.
    • Potential retaliation from China or other affected countries under WTO rules is a risk.

  • Regulatory Impact:

    • The duties align with India's broader strategy to address cheap imports and promote domestic industries.
    • Similar anti-dumping measures have been imposed on products from various countries, indicating a trend of protectionist trade policies.

Strategic Considerations

  • Domestic Industry Support: The move supports Indian manufacturers in sectors like electric vehicles, telecom devices, and water treatment chemicals.
  • Global Trade Relations: Could strain India-China relations, particularly given China's status as India's second-largest trading partner.
  • WTO Compliance: The measures comply with WTO rules but may still face challenges if deemed excessive or unfair by other members.

Conclusion

India's imposition of anti-dumping duties on five Chinese products reflects a strategic move to protect domestic industries and reduce trade imbalances. While the immediate impact will be felt by Chinese exporters, the long-term effects could influence global trade dynamics and India-China relations.