India to probe dumping of chemical from Pak, other nations

India has started a probe into alleged dumping of a chemical, used as an antiseptic and antibacterial agent, from Pakistan, Bangladesh and other countries.

Acting on a joint complaint by National Peroxide Ltd and state-owned Hindustan Organic Chemicals, the Directorate General of Anti-Dumping and Allied Duties (DGAD) has started a probe into imports of 'Hydrogen Peroxide' originating in or exported from Bangladesh, Taiwan, Korea, Indonesia, Pakistan and Thailand.

The move is aimed at protecting domestic players in the automobile sector against cheap imports.

In a notification, the DGAD said there was sufficient prima facie evidence of the 'injury' being suffered by the domestic industry caused by dumped imports from the countries to "justify" initiation of an anti-dumping investigation.

"....the Authority (DGAD) hereby initiates an investigation into the alleged dumping, and consequent injury to the domestic industry...to determine the existence, degree and effect of alleged dumping and to recommend the amount of anti-dumping duty, which if levied, would be adequate to remove the 'injury' to the domestic industry," it said.

The period of investigation (POI) for is from April 2014 to June 2015 (15 months).
After the probe, DGAD, if needed, would recommend to the Finance Ministry for imposition of the duty.

Hydrogen peroxide has strong oxidising properties and is therefore a powerful bleaching agent that has found use as a disinfectant, as an oxidiser, and in rocketry and in bipropellant systems.

It also finds application in odour control, corrosion control, disinfection/ bio-control, paper and pulp bleaching, therapeutic uses as an antiseptic and antibacterial agent, among others.

The anti-dumping duty is aimed at ensuring fair trading practices and creating a level-playing field for domestic producers vis-a-vis foreign producers and exporters resorting to dumping of goods at below-cost rates.

Commercially, the product is produced and sold in 35 per cent, 50 per cent, 60 per cent and 70 per cent concentration.

Applicants, the DGAD said have submitted that 90 per cent concentration of the product is used by ISRO and the product is not produced by the domestic industry and hence the scope of product under consideration should be restricted and defined as 'Hydrogen Peroxide (H2O2) below 90 per cent concentration'.

The DGAD said the request of the applicant for restricting the product to 90 per cent concentration could be examined during the course of the investigation and considered at the stage of final finding.