India initiates anti-dumping probe against acid from China, Korea

India has initiated an anti-dumping probe against 'Ursodeoxvcholic Acid', used in the medical field, imported from China and Korea following a complaint by a domestic player.

The commerce ministry's investigation arm Directorate General of Trade Remedies (DGTR) has started the probe into alleged dumping of this acid, which is used as medical therapy in gallstone disease (cholelithiasis) and for biliary sludge.

Arch Pharmalabs Ltd has filed an application before the directorate for initiation of anti-dumping investigation and imposition of the duty, according to a notification of the DGTR.

The applicant, it said, has claimed that the injury to the domestic industry is being caused due to dumped imports from China and Korea.

The Directorate said that "on the basis of the duly substantiated written application filed by or on behalf of the domestic industry, and having satisfied itself, on the basis of the prima facie evidence submitted by the domestic industry about the dumping...the authority hereby initiates an investigation".

If it is established that the dumping has caused material injury to the domestic players, the DGTR will recommend the imposition of anti-dumping duty on the imports from these countries. The finance ministry takes the final decision to impose the duties.

Countries start anti-dumping probes to determine whether their domestic industries have been hurt due to a surge in cheap imports. As a countermeasure, they impose these duties under the multilateral regime of the Geneva-based World Trade Organization (WTO).

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. India has already imposed an anti-dumping duty on several products to tackle cheap imports from various countries, including China.

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