Revenue Department imposed Anti-dumping Duty on Imports of Gas from China & Japan

The Revenue Department announced in July 2011 it’s decision to impose anti-dumping duty of up to USD 1.41 per kg on imports of a gas, used primarily for refrigeration purpose with an objective to protect domestic players from cheap Chinese and Japanese shipments. The duty would range from between USD 0.69 per kg and USD 1.41 per kg on imports of the gas from Japan and China.
The restrictive duty on the import of 1,1,1,2-Tetrafluoroethane or R-134a is to be imposed for a period of five years.

R-134a is an inert gas used primarily as a high temperature refrigerant for domestic refrigeration and automobile air conditioners. Other uses include plastic foam blowing and as a cleaning material and for removing moisture from compressed air.

The imposition of duty was recommended by Directorate General of Anti-Dumping and Allied Duties (DGAD), a nodal agency under the Commerce Ministry after an investigation. The DGAD had concluded in its probe that the domestic industry had suffered a material injury on account of dumping of the product by the two countries.

India had already imposed anti-dumping duty on imports of fabric, yarn, nylon tyre cord and several chemicals. Anti-dumping duty is recommended by the Commerce Ministry, while the Finance Ministry imposes the same. Anti-dumping duties vary from product to product and from country to country.

Countries initiate anti-dumping probes to check if domestic industry has been hurt because of a surge in cheap imports. As a counter-measure, they impose duties under the multilateral WTO regime.