Anti-dumping probe on ‘insoluble sulphur’ imports from China and Japan

News Excerpt:

The Directorate General of Trade Remedies (DGTR) has initiated an anti-dumping investigation on ‘insoluble sulphur’ imports from China and Japan.

More on the news:

  • DGTR, the investigation arm of the commerce ministry is probing the alleged dumping of 'Insoluble Sulphur' following a complaint by a domestic player.
  • If it is established that the dumping has caused material injury to domestic players, the DGTR would recommend the imposition of anti-dumping duty on imports.
  • The finance ministry takes the final decision to impose duties.
  • Anti-dumping probes are conducted by countries to determine whether domestic industries have been hurt because of a surge in cheap imports.
  • India has already imposed anti-dumping duty on several products to tackle cheap imports from various countries, including China.

Insoluble Sulphur:

  • Insoluble sulphur is an important rubber additive agent.
  • It is widely used in the manufacture of tyres, tread, shoes, all kinds of automobile rubber parts and other rubber products. 
  • Insoluble sulphur is mainly used as a vulcanisation accelerator and agent in the rubber industry.
    • Vulcanization is a chemical process by which the physical properties of natural or synthetic rubber are improved.
  • It allows a more solid adhesion of the rubber, prevents the rubber from breaking apart and improves resistance to heat and tyre wear, and is, therefore, an essential raw material in tyre production.

Anti-dumping duty:

  • Dumping: It refers to exporting a product at below national market cost to gain market share on the world market. 
  • Anti-dumping duties are taxes imposed on imported goods in order to compensate for the difference between their export price and their normal value if dumping causes injury to producers of competing products in the importing country.
  • 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.

Directorate General of Trade Remedies (DGTR):

  • The Directorate General of Trade Remedies (earlier known as the Directorate General of Anti-dumping and Allied Duties) was restructured in May 2018 as an integrated single window agency for providing a comprehensive and swift trade defence mechanism in India.
  • DGTR after restructuring now deals with Anti-dumping, Countervailing Duties and Safeguard measures.
  • It also provides trade defence support to the domestic industry and exporters in dealing with increasing instances of trade remedy investigations instituted against them by other countries.
  • DGTR functions as an attached office of the Department of Commerce, Ministry of Commerce and Industry.