Anti-dumping probe in aluminium foil imports from China

India has started an anti-dumping probe into imports of aluminium foil, widely used by food and pharmaceutical firms, from China to protect domestic producers from cheap imports.

Hindalco Industries, Raviraj Foils and Jindal India have approached the Directorate General of Anti-Dumping and Allied Duties (DGAD) for initiation of anti-dumping investigation and imposition of anti-dumping duty on imports of aluminium foil from China. In a notice, the DGAD said "prima facie" sufficient evidence exists to justify initiation of an anti-dumping investigation.

"The authority (DGAD), hereby initiates an investigation into the alleged dumping, and consequent injury to the domestic industry ... to determine the existence, degree and effect of alleged dumping and to recommend the amount of anti-dumping duty, which if levied, would be adequate to remove the 'injury' to the domestic industry," the notice said.

Aluminium foil is used extensively for the protection, and storage of foods and beverages. Major applications of aluminium foil are in the pharmaceuticals industry for packing medicines; food industry for packing processed foods, and cigarette industry for wrapping cigarettes, among others.

The DGAD notice said the applicants claimed that imports have spurted from China and the shipments are threatening "material injury to the domestic industry". The notice added that there was significant increase in imports, decline in import price, and significant surplus capacity.

The DGAD in Ministry of Commerce and Industry only recommends imposition of anti-dumping duty. It is the revenue department in the Finance Ministry which actually imposes the levy.