Government May Impose Anti-Dumping Duty On Chinese Aluminium Foil

India may impose anti-dumping duty of up to $1.63 per kg on imports of aluminium foil from China to guard domestic players from cheap inbound shipments.

Hindalco Industries, Mumbai, Raviraj Foils, Ahmedabad, and Jindal India, Kolkata, have jointly filed an application seeking anti-dumping investigations into imports of aluminium foils.

In its final findings, the Directorate General of Anti- Dumping and Allied Duties (DGAD), under the commerce ministry, has found that the foil has been exported to India from China below its normal value which has resulted in dumping. The DGAD said that it considers it necessary to impose the duty on the imports.

"...having established a positive dumping margin as well as material injury to the domestic industry caused by such dumped imports, the authority is of the view that imposition of duty is necessary to offset dumping and injury," DGAD has said in a notification.

It has recommended an anti-dumping duty in the range of $ 0.69 per kg to $1.63 per kg on the imports. While DGAD recommends the duty, the Finance Ministry imposes it.

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

Countries initiate anti-dumping probes to determine if the domestic industry has been hurt by a surge in below-cost imports. As a counter-measure, they impose duties under the multi-lateral WTO regime.

Anti-dumping measures are taken to ensure fair trade and provide a level-playing field to the domestic industry. They are not a measure to restrict imports or cause an unjustified increase in cost of products. Unlike the safeguard duty, which is levied in a uniform way, anti-dumping duty varies from company to company and country to country.