Commerce ministry wants anti-dumping duty on Chinese tiles

The Ministry of Commerce has suggested the continuation of anti-dumping duty on Chinese tiles, utilised for covering floors and walls in buildings, for five more years to secure domestic players from cheap imports.

Commerce ministry's investigation arm Directorate General of Trade Remedies (DGTR), in a notification, told the media that there is positive proof of likelihood of dumping of Glazed or Unglazed Porcelain or Vitrified Tiles in the polished or unpolished finish with less than 3% water absorption and injury to the domestic industry if the current anti-dumping duty would be removed.

The authority considers it is vital to suggest the continuation of definitive anti-dumping duty on the tiles for an additional term of five years.

The directorate has suggested $1.87 per sq meter tonne duty. The Ministry of Finance takes the final decision to inflict this duty.

In its examination, the directorate has resolved that the product continues to be exported to India at costs below the normal value leading to continued dumping.

The import volume has remained low because of the antidumping duty in force. But, the import volume is anticipated to surge majorly, considering the low and dumped cost at which goods have been exported from China to third nations, vital surplus capacities in China coupled with a further addition to capacities.

Indian Council for Ceramic Tiles and Sanitaryware, Morbi Ceramics Association, Gujarat Granito Manufacturers Association, and Sabarkantha District Ceramics Association had asked for initiation of a sunset review study of anti-dumping duty inflicted on the imports of these China tiles.

In international trade parlance, dumping occurs when a nation or a firm ships an item at a rate lower than the cost of that product in its domestic market.

Dumping affects the product cost in the importing nation, impacting the margins and profits of manufacturing companies.

As per the global trade standards, a nation is allowed to inflict tariffs on such dumped products to render a level-playing field to domestic firms. The duty is inflicted only after a thorough investigation by a quasi-judicial body, like DGTR, in India.

Anti-dumping duty imposition is permitted under the World Trade Organisation (WTO) regime. India and China are members of this Geneva-based organisation, which deals with global trade standards. China is a chief trading partner of India.

The duty aims at guaranteeing fair trading practices and generating a level-playing field for domestic manufacturers vis-a-vis foreign manufacturers and exporters.

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