The Centre is likely to impose anti-dumping duty on a Chinese antibiotic as the Commerce Ministry’s investigation arm DGAD has recommended a levy of up to $9.48 per kg in its final findings.
The Directorate General of Anti-Dumping and Allied Duties (DGAD), under the Ministry, has concluded in its probe that ‘Ofloxacin’ has been exported to India from China below its normal value, which has resulted in dumping.
The domestic industry has suffered material injury due to this dumping, the DGAD has said in a notification.
Aarti Drugs Ltd had filed the complaint over dumping of the drug from the neighbouring country.
In its final findings, the directorate has stated that imposition of anti-dumping duty is required to offset dumping and injury to the domestic industry.
The authority considers it “necessary” to recommend imposition of the duty on the imports of for a period of three years only,” it added.
Ofloxacin is used to treat certain infections including bronchitis, pneumonia, and infections of the skin, bladder, urinary tract, reproductive organs, and prostate gland.
While DGAD recommends the duty to be levied, the Finance Ministry notifies it.
The recommended duty ranges between $2.58 per kg and $9.48 per kg.
Countries initiate anti-dumping probes to determine if the domestic industry has been hurt by a surge in below-cost imports. As a counter-measure, they impose duties under the multilateral WTO regime.
India has initiated maximum anti-dumping cases against ‘below-cost’ imports from China.
Increasing imports and dumping of goods from China have always been an area of concern for Indian companies. India’s exports to China were only $10.17 billion in 2016-17 but imports aggregated at $61.28 billion in that fiscal.