In a significant move, the Directorate General of Trade Remedies (DGTR), the commerce ministry’s investigative arm, has initiated investigations into the alleged dumping of three Chinese products. This action is driven by the DGTR’s commitment to protect Micro, Small, and Medium Enterprises (MSMEs) in India from the influx of inexpensive imports from China. Typically, anti-dumping investigations are triggered by applications submitted by domestic manufacturers. However, in this case, due to the lack of familiarity among fragmented industries with the intricate procedures involved in trade remedy investigations, the DGTR has taken the unprecedented step of initiating the probes independently.
According to notifications issued by the DGTR, the investigations pertain to the alleged dumping of telescopic channel drawers, unframed glass mirrors, and fasteners.
This move aims to provide essential protection to MSME producers against the adverse effects of dumped goods originating from China.
A senior government official noted, “This represents a significant leap from DGTR’s first suo-motu investigation in 2000 concerning dry batteries from China, which led to the imposition of duties for five years. Additionally, this marks the first instance where India’s anti-dumping authority has simultaneously launched three suo-motu investigations against China.”
The DGTR’s decision to initiate these investigations was influenced by information received regarding Indian producers facing intense competition from unfairly priced Chinese imports.
One notification revealed that Highhope Furniture Fittings Manufacturers Associates Pvt Ltd, representing 25 telescopic channel drawer manufacturers, reported a substantial decline in Indian production due to a significant surge in dumped imports from China. The estimated import value for this product is Rs 356 crore.
Concerning unframed glass mirrors, the All India Mirror Manufacturers Association highlighted that most producers in this sector are medium, small, and micro enterprises. Some have ceased production as they could not withstand the competition from dumped Chinese imports. In the fiscal year 2022-2023, demand for unframed glass mirrors was estimated at around 1,10,904 metric tonnes, with China’s imports accounting for 72% of this demand, valued at Rs 183 crore.
Additionally, Apt Tools and Machinery, along with the Northern Screw Association, filed a representation urging the DGTR to impose anti-dumping duties on nuts, bolts, and screws imported from China. Imports of these products amounted to Rs 137 crore in the previous fiscal year. The industry comprises approximately 179 SMEs with an investment exceeding Rs 1,200 crore, providing employment to more than 15,000 individuals. In the last fiscal year, India imported around 16,168 metric tonnes of these products from China.
In the fiscal year 2022-23, India imported nearly USD 100 billion worth of merchandise from China, resulting in a merchandise trade deficit of USD 83 billion.
To facilitate the participation of fragmented industries in trade remedies such as anti-dumping and countervailing duties, the DGTR previously simplified procedural requirements. The directorate issued trade notices that allowed for sampled analyses of these industries’ conditions. This step has made it easier for domestic producers to access remedies against unfairly priced imports.
If it is established that the dumping of these products has caused harm to domestic players, the DGTR may recommend the imposition of anti-dumping duties on these imports. The final decision to impose such duties rests with the finance ministry.
Anti-dumping investigations are conducted by countries to assess whether domestic industries have been adversely affected by a surge in cheap imports. These duties are imposed under the multilateral framework of the Geneva-based World Trade Organization (WTO) to ensure fair trade practices and create a level playing field for domestic producers in relation to foreign counterparts.
India has previously imposed anti-dumping duties on various products to address the issue of low-priced imports from several countries, including China.
By PTI