The Finance Ministry has imposed a definitive safeguard duty of 10 per cent on phthalic anhydride imports into India.
This duty will be valid for a period of one year — from January 17, 2012 to January 16 next year, the Revenue Department has said.
It would not apply on phthalic anhydride imports from developing countries other than China, Pakistan and Thailand.
A safeguard duty is a temporary measure which is brought in for certain timeframe to avert any damage to the domestic industry from cheap imports.
Phthalic anhydride is widely used to manufacture synthetic resins, which act as binders in paint products. It also plays a primary role as a chemical intermediate in the production of plastics and polyester resins.
The Director-General (Safeguards) had in March this year recommended that a definitive safeguard duty of 10 per cent be levied on phthalic anhydride imports into India.
It had also suggested that no safeguard duty be levied on phthalic anhydride imports from developing countries other than Pakistan, China and Thailand.
The petition seeking safeguard duty on phthalic anhydride imports was filed by three domestic manufacturers — Thirumalai Chemicals, IG Petrochemicals and Mysore Petrochemicals which account for 87 per cent of the domestic production.