Centre starts anti-dumping probe into Chinese rubber, backs local firms
According to the notification, the applicant alleged that the dumping of Halo Isobuten and Isoprene rubber has been impacting domestic industry
The Commerce Ministry's arm, Directorate General of Trade Remedies (DGTR), has initiated an anti-dumping probe into the import of Chinese rubber, used mainly in the auto industry, following a complaint by a domestic manufacturer, Reliance Sibur Elastomers.
The action has been taken to protect the interests of local manufacturers to ensure fair trading practices.
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According to the DGTR notification, the applicant alleged that the dumping of Halo Isobuten and Isoprene rubber was impacting the domestic industry and requested the imposition of anti-dumping duty on imports from China.
Duties against dumping
"Based on the duly substantiated application filed by the domestic industry, and having satisfied itself, based on the prima facie evidence submitted, substantiating dumping of the product under consideration from the subject countries, injury to the domestic industry and a causal link between such dumping and injury...the authority, hereby, initiates an investigation," it said.
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If it is established that the dumping has caused material injury to the domestic player, the DGTR would recommend the imposition of the levy on the imports. The Finance Ministry makes the final decision to impose duties.
Usage of imported rubber
The product is used in inner tubes of bicycles, passenger cars, trucks, and industrial and agricultural tyres. It is also used for making hoses, seals, tank linings, conveyor belts, protective clothing and consumer products, such as ball bladders for sporting goods.
Anti-dumping probes are conducted by countries to determine whether domestic industries have been hurt because of a surge in cheap imports. As a countermeasure, they impose these duties under the multilateral regime of the Geneva-based World Trade Organisation (WTO).
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The duty is aimed at ensuring fair trading practices and creating a level playing field for domestic producers vis-a-vis foreign producers and exporters. India and China are members of the WTO. India has already imposed anti-dumping duties on several products to tackle cheap imports from various countries, including China.