India has levied anti-dumping duties of 27-63% on plastic processing machines from China and Taiwan for five years.
In a significant move to protect its Burgeoning manufacturing sector, India has levied anti-dumping duties on plastic processing machines originating from China and Taiwan. The Central Board of Indirect Tax and Customs (CBIC) confirmed on Thursday that these duties would be in effect for a period of five years. This decision follows a comprehensive recommendation by the Directorate General of Trade Remedies (DGTR), aimed at curbing unfair trade practices and fostering a level playing field for domestic producers.
The imposition of these duties, which vary between 27% and 63%, comes after thorough investigations revealed that these imported machines were being sold in the Indian market at "unfairly low prices." Such predatory pricing, commonly known as dumping, was found to be causing substantial material harm to Indian manufacturers, making it difficult for them to compete. The Ministry of Finance, through a gazette notification, officially ratified the decision, emphasizing the government's commitment to safeguarding local businesses and ensuring fair market dynamics. The duties will be collected in Indian currency, calculated based on the cost, insurance, and freight (CIF) value of the imported goods.
Anti-dumping duties are a recognized tool under the World Trade Organization (WTO) framework, designed to counteract situations where goods are exported at a price lower than their normal value in the country of origin, thereby distorting International Trade. By bridging this price gap, the duty helps to restore competitive balance and protect the economic viability of domestic industries.
The Indian government has demonstrated a sustained effort to reinforce its domestic manufacturing capabilities and reduce its reliance on imports. This month alone, India has already imposed anti-dumping duties on six other Chinese products. These include critical raw materials like herbicide PEDA, pharmaceutical input Acetonitrile, Vitamin A Palmitate, Insoluble Sulphur, Potassium Tertiary Butoxide, and d茅cor paper. The duties on these diverse products range significantly, from $481 per tonne for Acetonitrile to a high of $1,710 per tonne for Potassium Tertiary Butoxide, underscoring the granular approach adopted by the trade remedies directorate.
The intensified focus on anti-dumping measures is also set against the backdrop of India's escalating trade deficit with China. In the fiscal year 2024-25, this deficit surged to a record $99.2 billion. While exports to China experienced a decline of 14.5% during this period, imports from China saw a considerable rise of over 11%, reaching an alarming $113.45 billion. These figures highlight the economic necessity for India to protect its industries from subsidized or unfairly priced foreign goods.
