New Delhi, March 12 India has started an investigation into alleged circumvention of countervailing duties imposed on saccharin—used in various industries such as food, beverage, and pharmaceuticals—imported from China, according to a notification.
The investigation was initiated by the Directorate General of Trade Remedies (DGTR), under the Ministry of Commerce, following a request from Swati Petro Products and Blue Jet Healthcare.
The applicants have alleged that the existing countervailing duties imposed on Chinese imports are being circumvented through the rerouting of such shipments from Thailand.
"They have alleged that saccharin exported from Thailand is not produced in Thailand but is of Chinese origin and merely routed through Thailand to avoid payment of countervailing duty," according to the notification.
The applicants have contended that there are no genuine manufacturing facilities for saccharin in Thailand.
The Ministry of Finance imposed countervailing duties on the product imported from China on February 25 last year. These duties are still in force on imports from China.
"Based on the application filed by the applicants, the authority hereby initiates an anti-circumvention investigation," the DGTR said in a notification.
If the DGTR finds that the duty is being circumvented by Thailand, it would recommend the extension of countervailing duty on Bangkok. The finance ministry would then make the final decision to extend the duty.
Saccharin is used in a variety of industries such as food and beverage, personal care products, table top sweeteners, electroplating brighteners, and pharmaceuticals.
The applicants have requested to extend the existing countervailing duty on imports from Thailand.
"The applicants have alleged that the countervailing duty imposed on imports of Saccharin originating in or exported from China PR is being circumvented through imports consigned from Thailand," according to the notification.
