Govt promises steps to protect domestic industry

The Government today assured Parliament that it would take all possible steps to protect domestic industries after members raised concern over cheaper Chinese goods flooding the market.

The issue was raised during Question Hour in the Lok Sabha on Friday, when members asked the Government what it was doing to check the influx of imported Chinese goods such as bicycle, garlic and fireworks, which were impacting the domestic industry. Some members also raised concerns over Chinese goods entering the country via third countries such as Sri Lanka and Bangladesh.

Commerce and Industry Minister Nirmala Sitharaman said measures such as anti-dumping duty (higher duty when there is apprehension of goods being dumped by a particular country), safeguard duty (additional duty on import of good by a group of countries after sudden surge in imports), banning of import for specified period and so on were already there. On import of Chinese goods through other countries, she said, “I am certainly aware that not just in bicycles, but in many other products too such things were happening. We are certainly working on understanding how best we can counter these .”

Anti-dumping duty Sitharaman informed the House that as on August 6, the Directorate-General of Anti-Dumping and Allied Duties has initiated investigations into 690 cases involving 302 products from various countries, since 1992. Out of these, 166 products involve import from China in product groups such as chemicals and petrochemicals, pharmaceuticals, products of steel and other metals, fibres & yarns and consumer goods.

Safeguard duty The Minister said safeguard measures were taken when there was a sudden surge in import from various countries, including China, and that was also well within and in accordance with the WTO (World Trade Organisation) Agreement on Safeguards. “That is one of the ways in which we protect our industries,” she said, while informing members that safeguard duty on sodium nitrate was imposed in February 2014 at the rate of 30 per cent for full year in the first year and 28 per cent for the three months in the second year.

Other restrictions A ban on import of milk and milk products (including chocolate, chocolate product, candies, confectionaries and food preparations with milk or milk solids as an ingredient) from China was imposed on January 1, 2008 and will continue till June 23, 2015. “In the case of toys, when we found hazardous materials they were also, based on the quality and standards, restricted under our Foreign Trade Policy,” she. Similarly, mobile handsets with international mobile equipment identity (IMEI) from China cannot be imported.

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