The Director-General (Safeguards) has initiated a review investigation for continuation/extension of duty on pthalic anhydride imports into India.
The existing definitive safeguard duty, which was imposed in May, is in vogue till January 16 next year.
The move to initiate review investigation follows an application filed by Thirumalai Chemicals Ltd, IG Petrochemicals and Mysore Petrochemicals for continuation/extension of safeguard duty for a further period of one year from the date of expiry of existing duty.
These three companies account for 88 per cent of the total production of pthalic anhydride in the country. It is an important chemical intermediate in plastics industry and used to produce phthalate esters, which function as plasticisers.
Pthalic anhydride is imported into India primarily from South Korea, Israel, Iran, Taiwan, China and Russia.
Imports have shown an increasing trend in absolute terms as well as compared to the domestic production. It has increased from 7,983 tonnes in the fourth quarter of 2011-12 to 12,907 tonnes in Q1 of 2012-13, reflecting an increase of 62 per cent.
Also, pthalic anhydride imports, as a percentage to domestic production, have increased from 13.54 per cent in Q4 of 2011-12 to 23.64 per cent in Q1 of 2012-13.