Government initiates anti-dumping proceedings against China

Government initiates anti-dumping proceedings against China

New Delhi, Nov 21: Following hectic lobbying by domestic industry, the government today initiated anti-dumping investigations on imports of dry batteries, toys and sports shoes from China.

The move follows representations by chambers of commerce alleging cheap imports of such Chinese goods into the country. ``In the light of reports on dumping of consumer products from China and based on specific information received in this regard, the Directorate-General of Anti-Dumping and Allied Duties (DGAD) has, suo-motto, initiated anti-dumping investigations under Rule 5 (4) of the Anti-Dumping Rules on imports of dry batteries, toys and sports shoes from China,'' says a press release issued by the Commerce Ministry.

While the government has initiated suo motto investigations based on reports, no Indian company has so far resorted to the anti-dumping mechanism to stop dumping of Chinese goods. Moreover, industry chambers also do not have figures to substantiate the qunatum of cheap imports taking place from China ``as most of it is through illegal routes,'' they say.

Interestingly tyre dealers have already begun disputing claims of industry chambers like Ficci, that tyre imports from China and other Asian countries have surged by over 30 per cent, saying, on the contrary, imports had actually halved!

``Tyre imports to India have halved from 2.50 lakh to 1.25 lakh during the year 1997-2000 which is less than one per cent of the total domestic production,'' All India Tyre Delears Federation has said in a letter to the Strategic Management Group set up by the government under Principal Secretary to the Prime Minister Brajesh Mishra to recommend revision in customs duties for certain products, in order to check surge in imports.

In its letter the Federation claims that the industry chambers were ``misleading the government in order to shield exploitative domestic tyre producers who had artifically jacked the prices''.

Decline in imports of tyres is rooted in adverse import duty structure, it said. On the contrary the Federation says ``the government should exempt the imported tyres from 30 per cent countervailing duty along with special addition duty of five per cent to provide the tyre dealers and importers a level playing field to market both foreign and local radial tyres.''

However, the decision of the government to initiate anti-dumping investigations assumes significance, since it is for the first time that investigations into dumping of consumer goods into India is being taken up. The earlier cases of investigations involved raw materials and intermediates belonging to the chemicals, petrochemicals, pharmaceuticals and metals sectors.

The government hopes that such a move will help in ``sending the right signal to the domestic industry in the wake of QRs (Quantitative Restrictions) being removed from April 2001''. But senior officials in the ministry also admit that at a macro level such surge of cheap imports from China is miniscule compared to the total import kitty of $ 47.22 billion. Moreover, so far there has been no major impact of removal of QRs and non-oil imports have increased by a mere 2.5 per cent during April-July this year as compared to the same period last year.