The central government has imposed anti-dumping duty on imports of flexible slabstock polyol, originating or being exported from Saudi Arabia and the UAE and costing between $101.8 and $235.02 per metric tonne for five years.
The Central Board of Indirect Taxes and Customs (CBIC) followed the recommendations of the Directorate General of Trade Remedies (DGTR) on this front for the overall advantage of the domestic industry.
The local businesses had apparently faced material losses due to the dumping of products from the two middle-eastern nations.
Dumping refers to a situation when a firm or a country exports a product at a cost lower than that of it in their domestic market. This leads to a negative impact on the product price in the importing countries and hence it ends up hitting a blow to the profit margins of manufacturing firms.
“The designated authority in its final findings has come to the conclusion that the product under consideration has been exported to India from the subject countries below its associated normal value, thus resulting in dumping,” the board was quoted as stating by the Economic Times.
Countries are permitted to levy tariffs on dumped products following a probe by a quasi-judicial body like the DGTR to offer an even break to domestic manufacturers. Flexible slabstock polyol is used to make polyurethane products, slabstock foam and also polyurethane foam mattresses.
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