Exporters ask govt to invoke law to prevent circumvention of anti-dumping duties by Chinese importers Ramesh Shankar, Mumbai

The pharmaceutical exporters in the country have asked the union commerce ministry to invoke circumvention law to prevent circumvention of anti-dumping duties by the importers, especially the Chinese importers, whose activities have made anti-dumping duties being imposed by the government significantly ineffective. 

According to the exporters, anti-dumping duties being imposed by the government on imports are being circumvented in several ways in view of ineffective circumvention law in the country and the fact that no circumvention investigation has been initiated by the government so far even though circumvention of duty is is a widespread phenomenon in the country. 

Citing an example, the exporters said that while anti-dumping duties were earlier imposed on imports of Diclofenac Sodium, it has recently come to the notice that the Chinese producers have been exporting Indolinone (dichlorophenyl and Indolinone crude) in order to circumvent the anti-dumping duties earlier imposed on Diclofenac Sodium. 

Indolinone is a penultimate intermediary for production of Diclofenac Sodium and imports of Indolinone is rendering the anti-dumping duties imposed on imports of Diclofenac Sodium significantly ineffective. And the value addition from Indolinone to Diclofenac Sodium is hardly 5 per cent. Because of these factors, imports of Indolinone have significantly increased in the country, which is significantly undermining the anti-dumping duties earlier imposed on imports of Diclofenac Sodium.

Exporters said that the case of circumvention of Diclofenac Sodium by export of Indolinone is only one of the examples. It is understood that such circumvention of anti-dumping duties is happening in several cases and the same is remaining unaddressed.

The circumvention law was introduced by the government sometime back.  But, it is however understood that the government has not invoked this law so far and has not imposed duties under circumvention law. Resultantly, the anti-dumping duties being imposed by the government are remaining significantly ineffective, exporters lamented.

As a solution, the exporters have demanded that the government should strengthen the Directorate and circumvention cases should be taken up aggressively in order to ensure that the Indian industry receives desired protection in cases of circumvention of anti-dumping duties. 

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