India Imposes Five-Year Anti-Dumping Duty on Chinese Lift Guide Rails to Protect Domestic Industry
Anti-Dumping Duty: DGTR has recommended imposing anti-dumping duty for five years on Chinese engineering goods used in lift systems. The purpose of an anti-dumping investigation is to determine whether cheap imports have caused harm to the domestic industry. After this investigation, duty is imposed by countries to prevent dumping.
The investigation arm of the Ministry of Commerce, DGTR, has decided to impose an anti-dumping duty for five years on Chinese engineering goods used in lift systems. Its purpose is to protect domestic companies from cheap imports.
DGTR has found in its final report that "T-shaped elevator/lift guide rail and counterweight guide rail" imported from China are being sold in India at a price lower than the normal price. This has created a situation of dumping.
DGTR has recommended an anti-dumping duty ranging from 24.11 per cent to 51.87 per cent on the CIF (cost, insurance, and freight) value of imports. DGTR recommends the duty, while the Finance Ministry takes the final decision to impose it.
DGTR has recommended an anti-dumping duty on guiding structures, i.e., guide rails used for safe and smooth operation of lift cars and counterweights/balancing weights.
The purpose of an anti-dumping investigation is to determine whether cheap imports have injured the domestic industry. After this investigation, duty is imposed by countries to prevent dumping. It takes place under the multilateral rules of the Geneva-based World Trade Organization (WTO). Both India and China are members of the WTO. The purpose of this duty is to ensure fair trade practices and provide a level playing field to domestic producers as compared to foreign producers and exporters.
India has already imposed anti-dumping duty on several products to tackle cheap imports from various countries, including China. India has a trade deficit of around $100 billion with China.
