Directorate-General for Trade Remedies, the research division of the Ministry of Commerce, has proposed to impose anti-dumping duties for five years on vitamin C imported from China to protect domestic producers from cheap imports from that country.
It has recommended the imposition of $3.2 per kg and $3.55 per kg of import duties from China, although the final decision should be made by the Ministry of Finance.
An investigation by the Directorate-General found that imports of vitamin C from China, which is used by pharmaceutical companies for the production of medicines, enter the Indian market at much lower prices, which are lower than the actual selling price and even the cost of sale.
Subsequently, the Directorate-General said in its decision that “it is recommended that a definitive anti-dumping duty be imposed on all imports of goods originating in or exported from China for a period of five years from the date of notification by the Government”.
In international trade usage, dumping occurs when a country or a company exports an item at a price that is lower than the price of that product in its domestic market.
Dumping affects the price of that product in the importing country and affects the margins and profits of the manufacturing companies.