India has initiated sunset review of anti-dumping duty imposed on caustic soda from Saudi Arabia and the US, a move aimed at guarding domestic players from cheap imports from these countries.

Caustic soda is used in sectors such as pulp and paper, newsprint, staple fibre, aluminium, cotton, textiles, toilet and laundry soaps, detergent, pharmaceuticals and petroleum refining.

The Directorate General of Antidumping and Allied Duties (DGAD), under the Commerce Ministry, in a notification stated that the petition for review was filed by Alkali Manufacturers’ Association of India (AMAI) on behalf of domestic producers.

The DGAD has started “to review the need for continued imposition of the duties in force” on caustic soda from Saudi Arabia and the US, the notification has said.

In the review, the DGAD will examine whether the expiry of the existing antidumping duty is likely to lead to continuation or recurrence of dumping and injury to the domestic industry.

Opposition from Finance Ministry

While DGAD recommends the duty to be levied, the Finance Ministry imposes it. 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 measures to restrict imports or cause an unjustified increase in cost of products.

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