The government might impose anti-dumping duty for 18 months on a Chinese synthetic rubber used in automobile and other industries.
The recommended duty ranges between $0.078 to $7.31 per kilogram.
Commerce ministry's investigation arm Directorate General of Trade Remedies said imposition of the duty on imports of 'fluoroelastomers' from China would help minimize impact of dumped imports.
"The authority considers it necessary to recommend imposition of definitive anti-dumping duty on imports...for 18 months," DGTR said in a notification. The finance ministry would take the final decision to impose these duties.
DGTR initiated the probe in January 2018 following a complaint from Gujarat Fluorochemicals which alleged dumping of the product. The directorate said the product has been exported to India from China at below its normal value, which has resulted in dumping.
"The domestic industry has suffered material injury and material retardation due to dumping of the product under consideration from the subject country. The injury has been caused by the dumped imports," it added.
There are various applications of fluoroelastomers such as in hydraulic seals, check valve balls, electrical connectors, automotive use in shaft seals, fuel injector, and aerospace use and fuel tank bladders.
Countries carry out anti-dumping probe to determine whether their domestic industries have been hurt because of a surge in below-cost imports. As a counter measure, they impose duties under the multilateral regime of World Trade Organization.
The duty is also aimed at ensuring fair trading practices and creating a level-playing field for domestic producers with regard to foreign producers and exporters.
India has already imposed anti-dumping duty on several products to check cheap imports from countries including China, with which India has a major concern of widening trade deficit. The deficit has increased to $63.12 billion in 2017-18 from $51 billion in the previous fiscal.
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