India has initiated a probe into alleged dumping of a chemical by Saudi Arabia to protect domestic players from cheap imports.

The chemical is mainly used in explosives and pharmaceuticals.

The Commerce Ministry’s designated authority, the Directorate General of Anti—Dumping and Allied Duties (DGAD), has started an investigation into alleged dumping of ’Pentaerythritol’ on the basis of an application filed by Kanoria Chemicals and Industries Ltd.

“...the authority (DGAD) hereby initiates an investigation into the alleged dumping and consequent injury to the domestic industry.

“This is to determine the existence, degree and effect of any alleged dumping and to recommend the amount of anti—dumping duty, which, if levied, would be adequate to remove the injury to the domestic industry,” the Commerce Ministry said in a notification.

The period of investigation is from April 2010 to June 2011. The injury investigation period will, however, also cover the period 2008—09, 2009—10, 2010—11, it said.

It added that the DGAD has prima facie sufficient evidence of dumping of the product from Saudi Arabia.

The product is also used in the manufacture of resins, printing inks, drying oils, detonators, explosives, and synthetic lubricants.

Countries initiate an anti-dumping probe to determine whether their domestic industries have been hurt because of a surge in cheap imports. As a counter—measure, they impose duties under the multilateral regime of the WTO.

The duty also ensures fair trading practices and creates a level—playing field for domestic producers vis—a—vis foreign producers and exporters resorting to dumping.

Unlike the safeguard duty, which is levied in a uniform way, anti—dumping duty varies from product to product and country to country.

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