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India has imposed anti-dumping duty on a Chinese chemical used in pharma industry and aluminium foil to protect domestic industry from cheap imports.

While an anti-dumping duty of up to $1.63 per kg was imposed on Aluminium foil, up to $8.71 per kg duty was slapped on imports of amoxicillin, used in pharmaceuticals. The duty on both the products would be effective for a period of five years, the finance ministry has said in separate notifications.

The commerce ministry’s investigation arm — Directorate General of Anti-Dumping and Allied Duties (DGAD) — in the separate probe had concluded that these products were dumped into India and that has caused material injury to the domestic industry.

Hindalco Industries, Raviraj Foils and Jindal India had filed the application for an anti-dumping probe into imports of aluminium foil, used for packing of medicines, processed foods and cigarette. Similarly, Aurobindo Pharma had filed the application for an anti-dumping probe on Amoxycillin from China.

Countries initiate anti-dumping probe to determine if the domestic industry has been hurt by flooding of below-cost import. As a counter-measure, they come up with duties under the multilateral WTO regime.

Anti-dumping steps are taken to ensure fair trade and provide a level-playing field to the domestic industry. They are not a measure to restrict import or cause an unjustified increase in cost of products.