The government has initiated a probe into alleged jump in Phenol imports, used in making of products like laminates and plywood, following a complaint from domestic players.
Commerce ministry’s investigation arm Directorate General of Trade Remedies (DGTR) has said after determining that there is sufficient evidence to justify initiation of safeguard investigation, it has initiated the probe.
In the probe, the directorate would see whether the imports has increased significantly and it has caused or threaten to cause serious injury to domestic producers of like and/or directly competing products.
The DGTR said that after examining the application filed by complainants, it prima facie finds that increase in the imports appear to be a result of unforeseen developments such as global oversupply and trade measures imposed by China against major Phenol producing countries.
Volume and prices of these imports have caused and/or threatening to cause significant injury to a domestic industry, it said.
"After determining that there is sufficient evidence to justify initiation of safeguard investigation, the director-general initiates an investigation...," it said in a notification.
If found that the jump in imports has impacted domestic players, the directorate would recommend safeguard duty on the imports. Finance ministry takes the final call to impose the duty.
The application for the probe was filed by Hindustan Organic Chemicals Ltd and Deepak Phenolics Ltd. They have alleged that increased imports of phenol is causing serious injury to the domestic industry. They have sought safeguard measures to protect the domestic industry.
Deccan Herald is on WhatsApp Channels | Join now for Breaking News & Editor's Picks