In an extended relief to domestic producers of ceramic ware, the government has decided to continue imposing anti dumping duties (ADD) on ceramic tableware and kitchenware (excluding knives and toilet ware) from China for another five years as investigations have indicated that allowing the duties to lapse could lead to continuation or recurrence of dumping and injury to the domestic industry.

“...the Authority is of the view that the ADD is also required to be extended to imports of the product under consideration declared as originating in Malaysia,” observed the sunset review notified by the Directorate General on Trade Remedies, a body under the Commerce and Industry Ministry, in the Gazette of India on Thursday.

The government will impose ADD of $1075 per metric tonne (mt) on ceramic tableware and kitchenware not only originating from China but also from Malaysia.

Malaysia route

Imposing ADD on items originating from Malaysia follows final findings of an anti-circumvention investigation that established that the items being produced in China were just “incrementally” being processed in Malaysia and then being exported to India, declared as originating in Malaysia to avoid payment of anti dumping duty.

Dumping is established when the investigating body can prove that the exporting country is shipping the particular item at prices lower than its normal value in its home market and in turn is also causing injury to local producers.

“Production, capacity utilisation, sales of the domestic industry have declined during the POI (period of investigation). It is also noted that in terms of market share in demand, subject imports along with the circumvented imports from Malaysia have captured a major share of the domestic market, where the capacity with the Indian industry is lying unutilised. Therefore, the domestic industry has suffered adversely in terms of effect on volume parameters,” the DGTR said in the notification.

‘To protect the domestic industry’

Considering the level of price undercutting, it is likely that the domestic industry shall suffer significant financial losses, should the domestic industry be forced to reduce the prices with the cessation of antidumping duty, the DGTR noted justifying the extension of duties.

Anti-dumping duties were imposed on ceramic tableware and kitchenware from China, provisionally in 2017 followed by final determination in 2018, after following due multilateral process. The total duration of the duties was five years, till 2022. 

The investigation was based on complaints made by domestic producers of ceramicware including Clay Craft (I) Pvt. Ltd. and Ceramic Tableware Pvt Ltd.