NEW DELHI: The government is likely to impose anti-dumping duty on a Chinese antibiotic as the commerce ministry's investigation arm DGAD has recommended levy of up to USD 9.48 per kg in its final findings.
The Directorate General of Anti-Dumping and Allied Duties (DGAD), under the ministry, has concluded in its probe that 'Ofloxacin' has been exported to India from China below its normal value, which has resulted in dumping.
The domestic industry has suffered material injury due to this dumping, the DGAD has said in a notification.
Aarti Drugs Ltd had filed the complaint over dumping of the drug from the neighbouring country.
In its final findings, the directorate has stated that imposition of anti-dumping duty is required to offset dumping and injury to the domestic industry.
The authority considers it "necessary" to recommend imposition of the duty on the imports of for a period of three years only," it added.
Ofloxacin is used to treat certain infections including bronchitis, pneumonia, and infections of the skin, bladder, urinary tract, reproductive organs, and prostate gland.
While DGAD recommends the duty to be levied, the Finance Ministry notifies it.
The recommended duty ranges between USD 2.58 per kg and USD 9.48 per kg.
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 multilateral 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.
India has initiated maximum anti-dumping cases against 'below-cost' imports from China.
Increasing imports and dumping of goods from China have always been an area of concern for Indian companies. India's exports to China were only USD 10.17 billion in 2016-17 but imports aggregated at USD 61.28 billion in that fiscal.
India is one of the most attractive markets for global producers due to its large middle-class population.