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The Directorate General of Trade Remedies (DGTR) has initiated a sunset review investigation concerning the anti-dumping duty on imports of Toluene Di-Isocyanate (TDI) originating in or exported from the European Union (EU) and Saudi Arabia.
The case, registered as AD (SSR) - 05/2024, follows the expiration of previously imposed duties and aims to assess whether the continuation of anti-dumping measures is necessary.
TDI is a crucial industrial chemical used in the manufacture of polyurethane foams, coatings, adhesives, and sealants. While widely used, it is also recognized for causing occupational asthma and respiratory issues, making its trade and regulation a significant industrial and health concern.
As per the official DGTR, the review has been launched based on an application by Gujarat Narmada Valley Fertilizers and Chemicals Limited (GNFC), the sole domestic producer of TDI in India. The applicant has argued that the imported TDI from the subject countries is being dumped at prices that cause injury to the domestic industry.
The DGTR has released an updated list of interested parties, which includes producers, exporters, importers, embassies, and industry associations engaged in the trade of TDI. Among the notable entities are Covestro Deutschland AG, BorsodChem Zrt., Sadara Chemical Company, Saudi Basic Industries Corporation (SABIC), and Dow Chemical Pacific Singapore Pvt. Ltd. The Embassies of the EU and Saudi Arabia are also participating in the proceedings.
The applicant, GNFC, has asserted that there is no significant difference between domestically produced TDI and the imported variants. The domestic industry claims that the dumping of TDI from the EU and Saudi Arabia at unfair prices is harming local manufacturers. The investigation will assess factors such as price undercutting, market share impact, and injury margin.
The DGTR noted that imports from Chinese Taipei and the United Arab Emirates—which were subject to duties in the original investigation—have not been considered in this review due to the absence of recent imports from these regions.
Interested parties listed in the DGTR notification have been requested to submit non-confidential versions (NCVs) of their previous and future submissions to all stakeholders, ensuring transparency in the investigation. Additionally, entities that have not been included in the updated list but wish to participate must inform the DGTR immediately for inclusion.
The DGTR has urged all stakeholders to regularly check https://dgtr.gov.in for updates on the investigation.
The outcome of this review will determine whether the anti-dumping duties on TDI imports from the EU and Saudi Arabia will continue. If the DGTR finds that dumping persists and is harming the domestic industry, the Government of India may extend the duties. However, if no significant injury is established, the anti-dumping duties could be lifted, allowing for unrestricted imports.
This investigation will be closely watched by domestic manufacturers, chemical traders, and industries reliant on TDI, as its findings could impact pricing, supply chain dynamics, and trade relations between India and the subject countries.
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