Anti-dumping duty may be imposed on silk exported to India from China

The Indian government to protect silk domestic industry from cheap in-bound shipments of mulberry raw silk from neighbouring country, China is likely to impose anti-dumping duty of $1.85 (approx. Rs.122) per kg. The directorate general of anti-dumping and allied duties (DGAD) during its investigation has concluded that “mulberry raw silk of grade 3A and below” has been exported to India from China below its normal value and due to which, the domestic industry has suffered “material injury”.

The authority (DGAD) recommends imposition of definitive anti-dumping duty… so as to remove the injury to the domestic industry, said the commerce ministry in a notification.

DGAD, the nodal agency under the commerce ministry for such investigations, has recommended an anti-dumping duty of $1.85 per kg on imports of the silk from the neighbouring country.

Imports from China have increased considerably from 12.63 lakh kg in 2010-11 to 22.17 lakh kg during the period of the investigation (April 2013 to June 2014). While DGAD recommends the duty, the finance ministry imposes it.

Anti-dumping measures are taken to ensure fair trade and provide a level-playing field to the domestic industry. They are not a measure to restrict imports or cause an unjustified increase in cost of products.

Anti-dumping investigations are initiated by countries 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 World Trade Organization regime.