DGTR, the investigation arm of the Ministry of Commerce, has initiated an in-house probe into the alleged dumping of aluminum products from China, Malaysia, Vietnam and Thailand. India wants to protect Micro, Small and Medium Enterprises (MSME) units from cheap imports from these countries. DGTR has also issued a notification for this. Generally, the Directorate General of Trade Remedies (DGTR) initiates anti-dumping investigations based on petitions filed by domestic producers. Businesses often do not have the necessary knowledge and skills to conduct trade remedy investigations. In such cases the Directorate investigates these cases on its own initiative.
Domestic industry is suffering due to dumping.
As per DGTR’s notification, it has received representations from Aluminum Extrusion Manufacturers Association of India (ALEMAI). The organization represents 228 manufacturers of aluminum extrusion profiles, structures and products. The Directorate General said that the domestic industry is suffering due to significant increase in imports through dumping. The products under investigation are used in many fields related to industrial, transportation, electricity and engineering.
These include windows, doors, curtain walls, partitions, railings and lighting profiles, industrial framing, mounting structures used in solar power plants, stairs, furniture, kitchen and cupboard profiles and bicycle parts. DGTR’s notification dated November 9 said that in view of the above and after being satisfied on the basis of the information provided by Alemai and its member producers, the authority initiates anti-dumping investigation on its own initiative.
Recommendation for imposition of anti-dumping duty
In this investigation the Directorate will ascertain the existence, extent and effect of the alleged dumping of the product. Also, it will recommend the imposition of anti-dumping duty in an amount sufficient to compensate the loss caused to the domestic industry. If it is proved that dumping of these products has caused serious injury to domestic companies, DGTR will recommend imposition of anti-dumping duty on these imports. The Ministry of Finance takes the final decision to impose anti-dumping duty. Countries conduct anti-dumping investigations to determine whether domestic industries have been hurt by a sudden surge of cheap imports.
In response, they impose these duties under the multilateral system of the Geneva-based World Trade Organization (WTO). The objective of this duty is to ensure fair trade practices and to provide a level playing field to domestic producers as compared to foreign producers and exporters. All the countries involved in this investigation are members of this organization. To counter cheap imports, India has already imposed anti-dumping duties on many products from various countries, including China.
