'Anti-dumping duty on Chinese calculators to continue'

Commerce ministry for continuation of anti-dumping duty on Chinese calculators

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The commerce ministry has recommended for continuation of anti-dumping duty on Chinese electronic calculators with a view to guard domestic players from cheap imports.

In a notification, the ministry's investigation arm Directorate General of Trade Remedies (DGTR) has said that there is a "positive" evidence of likelihood of dumping and injury to the domestic industry if the existing duty would be removed.

"Under these circumstances, the authority considers it appropriate to recommend continuation of existing quantum of anti-dumping duty on the imports from China," it said.

It has recommended two duties USD 0.28 per piece and USD 1.22 per price.

In its probe, the directorate has concluded that there is a continued dumping of the product from China and "the imports are likely to enter the Indian market at dumped prices in the event of cessation of duty".

While the DGTR recommends the duty, the finance ministry imposes the same.

The revenue department in May 2015 imposed the duty on Chinese calculators for five years. It will end on May 29 this year.

It has also recommended imposition of anti-dumping duty on imports of electronic calculators from Malaysia.

In international trade parlance, dumping happens when a country or a firm exports an item at a price lower than the price of that product in its domestic market.

Dumping impacts price of that product in the importing country, hitting margins and profits of manufacturing firms.

According to global trade norms, a country is allowed to impose tariffs on such dumped products to provide a level-playing field to domestic manufacturers. The duty is imposed only after a thorough investigation by a quasi-judicial body, such as DGTR, in India.

In its probe, the directorate has to conclude whether the imported products are impacting domestic industries.

Imposition of anti-dumping duty is permissible under the World Trade Organization (WTO) regime. India, China and Malaysia are members of this Geneva-based organisation, which deals global trade norms.

The duty is aimed at ensuring fair trading practices and creating a level-playing field for domestic producers vis-a-vis foreign producers and exporters.