Anti-dumping duty on methylene chloride to continue

The Commerce Ministry has recommended continuation of anti-dumping duty for five years on methylene chloride, a chemical used in pharma and agro industries, imported from the European Union and the US. The move is aimed at guarding domestic manufacturers from cheap imports from the two regions.

The duty recommended by the ministry’s investigation arm, the Directorate General of Trade Remedies (DGTR), which conducted a probe into the alleged dumping of the chemical from these two regions, ranges between US$0.32-0.36 per kg. The Finance Ministry takes the final call for imposition of the duty.

In its findings, DGTR concluded that there is a “continued dumping” of the product from the EU and the US and that is causing injury to domestic industry here.

Despite the anti-dumping duty in force, the financial performance of the domestic industry has deteriorated, DGTR said in a notification. “The authority recommends continued imposition of anti-dumping duty...for a period of five years concerning all imports of the subject goods originating in or exported from the EU and the US,” it said.

It also concluded that during the period of investigation (January-December 2017), the domestic industry has shown negative growth in terms of the economic parameters such as production, sales, and profitability. “The dumped imports from the EU and the US continue to cause injury to the domestic industry,” it added.

Gujarat Fluorochemicals Ltd. and Chemplast Sanmar had filed application before DGTR for review and continuation of the duties on these imports. In May 2014, the government had imposed anti-dumping duty on these imports from the US and the EU to protect the domestic industry.