Chemical Exporters Appeal Against India's Anti-Dumping Duty

Two local companies have filed petitions with the Indian authority for reviewing the anti-dumping duty imposed on shipment of a textile chemical from Bangladesh, officials said.

The move came early this month after India's Department of Revenue on June 14 slapped anti-dumping duty of $27.81-$91.47 per tonne on export of hydrogen peroxide, a chemical used as bleaching agent for textiles, from Bangladesh.

The neighbouring country's Directorate General of Anti-Dumping and Allied Duties recommended the penalty on import of the chemical from five countries, including Bangladesh, after inferring that the imports were affecting India's domestic industry.

An anti-dumping duty is a protectionist tariff that a government imposes on imported items on the ground that the products are priced below fair market value.

Dumping is a process where a company exports a product at a price lower than the one it normally charges in its own home market. To protect local businesses and markets, many countries impose stiff duties on products they believe are being dumped in their national market.

“We have appealed for review as the anti-dumping duty has been imposed on our product unjustifiably,” said Mohammad Akramuzzaman, chief financial officer of Samuda Chemical Complex Limited, a concern of Chittagong-based TK Group.

Samuda is one of the three local companies that export hydrogen peroxide to India and other neighbouring countries after meeting the domestic market's requirements for 60,000 tonnes a year.

Tasnim Chemical, a concern of Meghna Group of Industries, and ASM Chemical are the other two companies.

Samuda and ASM Chemical faced anti-dumping duty of $47.90 and Tasnim Chemical $27.81 for each tonne of hydrogen peroxide shipments to India.

Akramuzzaman said they have filed appeals to the Customs, Excise and Service Tax Appellate Tribunal of India and the date of hearing is yet to be fixed.

“We have hired a law firm, APJ-SLG, in India to move on our behalf.”

“Besides, the sales prices of our products have been calculated taking into account our global profit and production costs,” he added.

If any other company from Bangladesh wants to export hydrogen peroxide to India, they will be slapped with anti-dumping duty of $91.47 per tonne, according to the notification.

India accounted for nearly half of the 20,000 tonnes of hydrogen peroxide exported from Bangladesh in fiscal 2015-16. A year earlier, the total shipment of the chemical was 17,475 tonnes, according to Akramuzzaman.

Abdul Karim, assistant general manager of ASM Chemical, said the export of hydrogen peroxide would be affected if the anti-dumping duty is not withdrawn.

Local companies also export the chemical to Pakistan, Sri Lanka and Nepal, Akramuzzaman said, adding that Bangladesh's four companies produce more than the annual requirement for the chemical.

Apart from the hydrogen peroxide exporters, four jute millers have filed appeals with the Indian authority for review of the anti-dumping duty of $19-$352 a tonne on January 5 this year.