India has initiated an anti-dumping probe against imports of resorcinol, a chemical used in tyre and rubber products, from China and Japan. According to a commerce ministry notification issued on Friday, the investigation follows a complaint by Atul Ltd to the Directorate General of Trade Remedies (DGTR). The applicant has alleged that cheap imports of resorcinol are significantly harming the domestic industry. As reported by ETGovernment, the probe was launched after the DGTR satisfied itself on the basis of duly substantiated application filed by the applicant and prima facie evidence regarding dumping of the subject goods. The authority has initiated the investigation based on duly substantiated application filed by the applicant and prima facie evidence regarding dumping of the subject goods, with the DGTR's notification stating that the authority hereby initiates an anti-dumping investigation.
The authority has initiated the investigation based on duly substantiated application filed by the applicant and prima facie evidence regarding dumping of the subject goods. The directorate will determine the existence, degree and effect of the alleged dumping of the chemical exported from China and Japan. If dumping is established to have caused material injury to domestic players, the DGTR would recommend the imposition of levies on imports. According to the DGTR notification, if the authority concludes that the imports have caused material injury to domestic producers, it may recommend the imposition of anti-dumping duties. The investigation specifically targets shipments of Resorcinol, an intermediate compound crucial for bonding rubber to tyre cords and in specialized resins.
Resorcinol is primarily used as an intermediate in the manufacture of tyre and rubber products and in resin bonding applications. The product also serves in the manufacture of specialised wood adhesive resins, dyes, pharmaceuticals, and cosmetic preparations. Anti-dumping probes are conducted by countries to determine whether domestic industries have been hurt because of a surge in cheap imports, with duties imposed under the multilateral regime of the Geneva-based World Trade Organisation.
As reported by the commerce ministry, the finance ministry takes the final decision to impose these duties. India has already imposed anti-dumping duties on several products to tackle cheap imports from various countries, including China. The duties are aimed at ensuring fair trading practices and creating a level playing field for domestic producers vis-a-vis foreign producers and exporters, with India and these countries being members of the WTO. This measure aims to curb the flow of inexpensive foreign goods into the Indian market, following previous DGTR investigations into finished automotive tyre imports and raw tyre components.
