India Launches Probe Into Chemical Imports

New Delhi: India has launched an inquiry into the influx of a chemical utilized in the rubber sector from China and Japan, spurred by a grievance from a local participant. The commerce ministry’s investigative entity, Directorate General of Trade Remedies (DGTR), is delving into the purported influx of ‘Insoluble Sulphur’.

Oriental Carbon & Chemicals Ltd has submitted an appeal before the authority to conduct an inquiry into the alleged influx of the substances originating from these two nations. As per the DGTR’s communiqué, the petitioner has furnished prima facie substantiation concerning the detriment incurred by the local sector owing to the inundation of imports.

“The authority hereby commences an inquiry into the alleged influx and ensuing substantial harm to the domestic sector,” it remarked. Should it be verified that the influx has inflicted substantial harm on local participants, the DGTR would propose the imposition of anti-inundation levies on imports.

The final decision regarding levying duties lies with the finance ministry. Anti-inundation inquiries are carried out by nations to ascertain if domestic sectors have suffered due to a surge in low-cost imports. In response, they levy these levies within the multilateral framework of the Geneva-based World Trade Organization (WTO). The objective of the levy is to ensure equitable trade practices and establish an equitable landscape for domestic manufacturers vis-a-vis foreign counterparts and exporters.

India, China, and Japan are constituents of the WTO, a 166-member multinational trade organization. India has already enforced anti-inundation levies on numerous commodities to combat low-cost imports from diverse nations, including China.