The Finance Ministry has imposed safeguard duty on carbon black imports from China.
This duty will apply only on carbon black used in rubber applications (including tyres).
The Revenue Department has imposed safeguard duty of 30 per cent ad-valorem minus anti-dumping duty payable, if any, when imported during the period October 5, 2012 to October 4, 2013.
For the period October 5, 2013 to December 31, 2013, a safeguard duty of 25 per cent ad-valorem minus anti-dumping duty, if any will be applicable.
The Director General (Safeguards) had recommended safeguard duty for a three year period.
But the revenue department has settled for safeguard duty that will be valid for about 15 months.
The petition seeking safeguard duty on carbon black imports from China was filed by the Association of Carbon Black Manufacturers along with two of its member companies — Phillips Carbon Black Ltd and Hi Tech Carbon.
These two companies account for more than 80 per cent of carbon black production in the country.
Carbon black is a chemical used in production/processing of rubber (including tyres), as reinforcing filler. It is also known as acetylene black.
Carbon black used in non-rubber applications such as inks in copiers and computer printer cartridges, paints, crayons and polishes was not within the scope of the present investigation.