The Government has initiated a probe into alleged dumping of a chemical, used in paint industry, by China and Switzerland in the domestic market.

The move is aimed to protect domestic players from cheap imports.

The Directorate General of Anti-Dumping and Allied Duties (DGAD), an arm of the Commerce Ministry, has begun investigations into the matter.

In a notification, the DGAD has said that it has found a sufficient prima facie evidence of dumping of “Diketopyrrolo Pyrrole Pigment Red 254” from China and Switzerland.

It said the DGAD “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 anti-dumping duty, which if levied would be adequate to remove the ‘injury’ to the domestic industry’’.

The period of investigation is from January 2013 to December 2013. However, for the purpose of analysing injury, the data of the previous three years of 2010-2011, 2011-12 and 2012-13 would also be considered, it said.

After the probe, DGAD, if needed, will recommend an anti-dumping duty and the Finance Ministry will impose it.

Heubach Colour Pvt Ltd has filed the application before the DGAD alleging dumping of the chemical.

Countries initiate an anti-dumping probe 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.

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