New Delhi, March 26 India has initiated an investigation into the import of subsidized Chinese and Indonesian paperboards, as it is allegedly impacting domestic players, according to a notification.
The Directorate General of Trade Remedies (DGTR), the commerce ministry's investigation arm, has started the exercise following a complaint filed by the Indian Paper Manufacturers' Association on behalf of the domestic industry.
The applicant has alleged that the exports of multi-layer paperboards by Chinese and Indonesian firms, which are subsidized by the respective countries, are hurting the margins of Indian companies.
They have requested the initiation of an anti-subsidy or countervailing investigation on imports of boards originating in or exported from these two countries.
The applicant has alleged that the producers/exporters in these two nations have benefited from the subsidies provided at various levels by their respective governments in the form of grants, loans, guarantees, taxes, export credits, goods and services, or equity infusions.
"Based on the duly substantiated written application filed by or on behalf of the domestic industry, and having satisfied itself, on the basis of prima facie evidence submitted by the domestic industry, substantiating the existence of countervailable subsidies on production and export... the authority hereby initiates an investigation," the DGTR said in a notification.
It will determine the existence, degree, and effect of alleged subsidization.
If it is found that the subsidization is impacting Indian firms, the directorate would recommend the amount of anti-subsidy duty, which, if levied, would be adequate to remove the injury to the domestic industry.
Multi-layer paperboard is mainly used in the packaging sector for pharmaceuticals, FMCG products, food & beverages, electronics, and high-end cosmetics. It is also used for printing brochures, as book covers, and in the publishing industry.
In two separate notifications, the DGTR has stated that it has initiated a sunset review of anti-dumping duties on imports of seamless tubes, pipes, and hollow profiles of iron, alloy, or non-alloy steel; and certain flat-rolled aluminum products exported from China.
Hindalco Industries has filed an application before the DGTR seeking initiation of a sunset review investigation of anti-dumping duties on certain aluminum items exported by Chinese companies.
The authority is required to review whether the expiry of the existing anti-dumping duties on these goods are likely to lead to the continuation or recurrence of dumping and injury to the domestic industry.
Jindal Saw Ltd, Kirloskar Ferrous Industries, and Maharashtra Seamless Ltd have filed an application for the initiation of a sunset review of anti-dumping duties on imports of steel goods.
The applicants have alleged that dumped imports of steel goods from China have continued despite the anti-dumping duties in force, and have continued to cause injury to the domestic industry.
"Further, it has been claimed that there is a likelihood of continuation of dumping and injury in the event of the cessation of duties. The applicants have requested a change in the form of duty and an increase in the amount of duty in order to address the current injury," a DGTR notification said.