India initiates anti-dumping investigation into sodium cyanide imports from China, EU, Japan and Korea

India has launched an anti-dumping investigation into imports of the toxic chemical sodium cyanide from China, the European Union, Japan and Korea, following a complaint from domestic actors. Sodium cyanide is used in the extraction of gold and silver from their respective ores to make insecticides, dyes, pigments, and bulk medicines.

The Investigative Branch of the Department of Commerce, Directorate-General for Trade Defense Measures (DGTR), is investigating the alleged dumping of cyanide originating from or exported from these countries.

Hindusthan Chemical Company and United Phosphorous Ltd have submitted a request to investigate and impose an appropriate anti-dumping duty on imports from these countries. The DGTR issued a statement saying that the complainants had alleged that the allegedly dumped imports would cause serious injury to the domestic industry.

The normal value and the export price were compared on an ex-works basis, which prima facie proves that the dumping margin is above the established threshold and is significant for the product concerned from those countries.

“Therefore, there is sufficient prima facie evidence that the product in question is being dumped from the countries in question into the Indian domestic market,” it said. For the purpose of the investigation, the Directorate will examine the importation of the product between April 2019 and March 2022.

If dumping is found to have caused significant harm to domestic operators, the DGTR would recommend the imposition of an anti-dumping duty on those imports. The Treasury Department makes the final decision on the collection of duties. Anti-dumping investigations are conducted by countries to determine whether domestic industry has been hurt by a surge in cheap imports.

As a countermeasure, they impose these tariffs under the multilateral regime of the World Trade Organization (WTO) based in Geneva. The obligation aims to ensure fair trade practices and create a level playing field for domestic manufacturers versus foreign manufacturers and exporters.

India has already imposed anti-dumping duties on several products to combat cheap imports from various countries including China.

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