The General Trade Remedies Directorate (DGTR) recommended imposing anti-dumping duties on imports of aluminum foil from China, Malaysia, Thailand and Indonesia to compensate for the injury caused to the domestic industry by cheaper imports.
After a year-long investigation into complaints filed by Hindalco Industries Ltd, Raviraj Foils Ltd and Jindal India Ltd regarding the dumping of aluminum foil of 80 microns and less in FY20, the DGTR recommended to the Ministry of Finance to impose anti-dumping duties between $ 93.53 $ 976.99 per ton on aluminum foil.
DGTR rejected the idea that Raviraj and Jindal India import aluminum foil and therefore cannot claim domestic industry status. However, it did not include the aluminum foil inventory as a separate anti-dumping investigation regarding dumped imports of aluminum foil inventory is underway.
Opposing parties, including domestic users, asserted that aluminum foil is an environmentally friendly alternative to plastic bags and that the imposition of anti-dumping duties would worsen the gap between supply and demand for the goods. in question. “No ADD (anti-dumping duty) should be recommended on PUC (product under consideration), as domestic suppliers would disproportionately increase the price of the film, which would have a huge impact on users. The latest ADD imposed on the PR of China for sheets between 5.5 microns and 80 microns led to an increase in the prices of domestic suppliers of ₹35 to ₹40 per kg “, they added.
However, the domestic producers argued that the imposition of duties will not affect the gap between supply and demand. “The domestic industry has recently increased its capacity and other producers will undertake expansions. National capacity is sufficient to meet the country’s demand; thus, there is no question of a gap between supply and demand, ”they submitted.
The DGTR agreed with the domestic producers, believing that the purpose of the anti-dumping law is to create a level playing field for the production and consumption of the goods in the Indian market. “The imposition of ADD does not create a monopoly situation because imports from other suppliers, including those from the countries concerned, are not prevented from competing in the Indian market,” he added. .
India is currently the largest user of anti-dumping measures among members of the World Trade Organization (WTO).
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