Economy

DGTR probing alleged circumvention of anti-dumping duty on axle for trailers by Chinese firms

Updated : September 17, 2020 05:36 PM IST

The commerce ministry's investigation arm DGTR (Directorate General of Trade Remedies) has initiated a probe into an alleged circumvention of the anti-dumping duty imposed on the imports of 'axle for trailers' from China. 'Axle for trailers' are used in vehicles.

The anti-dumping duty on the product was imposed by the finance ministry in November 2016. According to a notification, the directorate has received information from Commissioner of Customs (imports), Nhava Sheva that the duty is being circumvented as the product is being imported in CKD (Complete Knock Down)/ SKD (Semi-Knock Down) form and then assembled as 'axle for trailers'.

The prima facie evidence indicates circumvention of the duty and undermining of the efficacy of the duty on the product. "The authority hereby initiates an anti-circumvention investigation," it said.

In a separate notification, the directorate said it has also started a probe into dumping of 'sodium hydrosulphite' -- used in various sectors such as textiles, soap, and glue -- by China and Korea. It started the probe after a firm filed an application before the directorate, alleging that dumping of the chemical is impacting the industry.

In international trade parlance, dumping happens when a country or a firm exports an item at a price lower than the price in its domestic market. Dumping impacts the price of that product in the importing country, hitting margins and profits of manufacturing firms.

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.

DGTR probing alleged circumvention of anti-dumping duty on axle for trailers by Chinese firms

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