On the basis of prima facie evidence submitted by the industry, "the authority, hereby, initiates an investigation", it said.
In the probe, the directorate will determine the existence, degree and effect of any alleged dumping in respect of the product from China.
If DGTR will find that there is dumping and it is impacting the domestic manufacturer, it will recommend the amount of anti-dumping duty, which if levied would be adequate to remove the injury to the domestic industry.
While the DGTR recommends the duty, the finance ministry imposes the same.
The period of investigation is April 2019-March 2020. It would also look into the data of the 2016-19 period.
In international trade parlance, dumping happens when a country or a firm exports an item at a price lower than the price of that product in its domestic market.
Dumping impacts the price of that product in the importing country, hitting margins and profits of the manufacturing firms.
According to global trade norms, a country is allowed to impose tariffs on such dumped products to provide a level-playing field to domestic manufacturers. The duty is imposed only after a thorough investigation by a quasi-judicial body such as DGTR in India.
The imposition of anti-dumping duty is permissible under the World Trade Organization (WTO) regime.
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.
(Only the headline and picture of this report may have been reworked by the Business Standard staff; the rest of the content is auto-generated from a syndicated feed.)
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