The investigation followed a complaint in this regard by Atul Ltd to the Directorate General of Trade Remedies (DGTR).
The applicant has alleged that the cheap imports of ‘Resorcinol’ is significantly harming the domestic industry.
“On the basis of the duly substantiated application filed by the applicant and having satisfied itself, on the basis of the prima facie evidence submitted by the applicant, regarding dumping of the subject goods…the authority hereby initiates an anti-dumping investigation,” the DGTR’s notification said.
In the probe, the directorate would determine the existence, degree and effect of the alleged dumping of the chemical exported from China and Japan.
If it is established that the dumping has caused material injury to domestic players, the DGTR would recommend the imposition of the levy on imports.
The finance ministry takes the final decision to impose these duties. The product is primarily used as an intermediate in the manufacture of tyre and rubber products and in resin bonding applications. It is also used 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.
As a countermeasure, they impose these duties under the multilateral regime of the Geneva-based World Trade Organisation (WTO). 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 these countries are members of the WTO.
India has already imposed anti-dumping duties on several products to tackle cheap imports from various countries, including China.