Home / Politics / Policy /  India probes cheap synthetic rubber import from China

New Delhi: India has initiated a probe into alleged dumping of Chinese synthetic rubber to guard domestic players from cheap imports from the neighbouring country.

Gujarat Fluorochemicals has filed an application before the Directorate General of Antidumping and Allied Duties (DGAD) for initiation of the investigation. If established that dumping of synthetic rubber (fluoroelastomer) has caused material injury to domestic players, the DGAD would recommend imposition of anti-dumping duty on the imports.

The commerce ministry’s investigation arm, DGAD in a notification said there is “sufficient evidence" of significant dumping margins to justify the probe. Anti-dumping duties are levied to provide a level playing field to local industry by guarding against cheap below-cost imports.

The probing authority “initiates anti-dumping investigation into the existence, degree and effect of alleged dumping" of the product from China, it said. The period of investigation covers July 2016 to June 2017. However, for the purpose of injury investigation, the period will also cover the data of 2014-17.

Increasing imports and dumping of goods from China have always been an area of concern for Indian companies. India’s exports to China were only $10.17 billion in 2016-17 but imports aggregated at $61.28 billion in that fiscal. The DGAD is also probing dumping of several other products such as certain chemicals from the neighbouring country. India is one of the most attractive markets for global producers due to its large middle class population.

Fluoroelastomer is a class of synthetic rubber designed for very high temperature operation. It is also called as the ‘Rubber King’. It is used in hydraulic O-ring seals, electrical connectors, shaft seals, aerospace, lubricants and hydraulic system, gaskets and fuel tank bladders.

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