India starts probe into dumping of Chinese aluminium radiators

India has initiated a probe into alleged dumping of aluminium radiators by China in the domestic market. The move is aimed at protecting domestic players in the sector against cheap imports.

The Directorate General of Anti-Dumping and Allied Duties (DGAD), an arm of the Commerce Ministry, has begun investigations into the imports of 'Aluminium Radiators, Aluminium Radiator Sub- Assemblies and Aluminium Radiator Core' from China. In a notification, the DGAD has said it has found a sufficient prima facie evidence of dumping of the product from China.

"The authority hereby initiates an investigation into the alleged dumping, and consequent injury to the domestic industry...To determine the existence, degree and effect of any alleged dumping and to recommend the amount of antidumping duty, which if levied would be adequate to remove the injury to the domestic industry," the notification said.

The period of investigation is from April 2014 to March 2015. After the probe, DGAD, if needed, will recommend an anti-dumping duty and the Finance Ministry will impose it.

Banco Products (India) Ltd has filed the application alleging dumping of the product from the neighbouring country. The company, it said, accounts for a major proportion of the total domestic production of the item constituting more than 69 per cent of Indian production.

Countries initiate anti-dumping probes to determine whether their domestic industries have been hurt because of surge in cheap import of any product. As a counter measure, they impose duties under the multilateral regime of the WTO.

The duty is aimed at ensuring fair trading practices and creating a level-playing field for domestic producers vis-a-vis foreign producers and exporters resorting to dumping of goods at below-cost rates.

In 2014-15, the India-China trade deficit widened to USD 49 billion. Indian industry has time and again raised concerns over cheap imports from China.