The Finance Ministry has slapped anti-dumping duty on the import of Coumarin, a chemical, from China. Coumarin is used to make various fragrance compounds like incense sticks, soaps, fine fragrances and cosmetics. This duty has been imposed to protect the domestic production of the chemical from cheap shipments from the neighbouring country.
The Directorate General of Anti-Dumping (DGAD) launched a probe into the dumping of Coumarin after Nasik-based Atlas Fine Chemicals, the sole producer of Coumarin in India, filed a complaint with DGAD.
The Revenue Department confirmed that a restrictive duty has been imposed for five years (March 2010-2015) at $14.02 per kilogram of Coumarin.
DGAD found that “the product under consideration had been exported to India from China below normal values and the domestic industry had suffered material injury on accounts of the imports,” the Hindu Business Line reports.
Anti-Dumping probes are initiated by countries’ to check if the domestic industry for any product has been affected by the surge of cheaper imports. Under the multilateral WTO regime, duties are imposed as a counter measure to the rise in such imports. These measures are not taken to cause an unjustified increase in the cost of products or to restrict imports. They ensure a level playing field for domestic players and promote fair trade.