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DGTR recommends anti-dumping duty on DMF imported from China and Saudi Arabia

Laxmi Yadav, Mumbai
Saturday, August 22, 2020, 08:00 Hrs  [IST]

The Directorate General of Trade Remedies (DGTR), the investigation arm of the Union commerce ministry, has recommended imposition of anti-dumping duty on dimethylformamide (DMF), imported from China and Saudi Arabia to guard domestic players from cheap imports.

DMF is used as a solvent in pharmaceuticals manufacturing, acrylic polymers manufacturer and pesticides formulations. It is used as a feedstock for synthesis of derivatives of DMF.

The dumped imports held about 78% of the Indian demand. India imported 34,039 metric tonne (MT) of DMF from China and Saudi Arabia in FY 2016-17. The import of DMF was reduced to 31,725 MT in FY 2017-18. It has again gone up to 44,848 MT in FY 2018-19. During the period of investigation (January 2019 to September 2019), the country imported 29,499 MT of DMF.

The DGTR has recommended the duty after conducting a preliminary probe on alleged dumping of the product by certain companies from these countries, following a complaint by domestic manufacturer Balaji Amines Ltd. Balaji has claimed to be the sole producer of DMF in India filed the application for dumping probe. As per the petition, Rashtriya Chemical & Fertilizers Ltd (RCF Ltd) was also a producer of DMF but has not produced it for quite some time.

The duty recommended is in the range of USD 318 per metric tonne to US$ 471 per metric tonne. The finance ministry takes the final decision to impose the duty.  "The authority recommends imposition of provisional anti-dumping duty equal to the lesser of margin of dumping and the margin of injury, so as to remove the injury to the domestic industry," the DGTR has said in a notification.

In its probe, the directorate said it has concluded that the product has been exported to India from these nations below its associated normal value, which resulted in dumping and in turn impacting the domestic industry.  The dumped imports held about 78% of the Indian demand and any fair share in demand to the domestic industry can be ensured by imposition of anti-dumping duties only, it stated.

As per 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, such as DGTR, in India.

The imposition of anti-dumping duty is permissible under the World Trade Organization (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.


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