Center will not impose anti-dumping duty on Chinese metal cutter wheels

New Delhi:

The government has decided not to levy anti-dumping duty on Chinese metal cutter wheels, as the finance ministry has not accepted the recommendations of the Directorate General of Trade Remedies (DGTR) for levying the levy.

The DGTR, the investigative arm of the commerce ministry, had probed the alleged dumping of “resin bonded thin wheels” from China and in September recommended imposition of the duty.

The product is used in a variety of fields from welding, cutting, foundry to slicing and cutting ferrous and non-ferrous materials in the primary metals markets.

“The Central Government, after considering the final findings of the Designated Authority (DGTR), has decided not to accept the recommendations,” an office memorandum of the Revenue Department said.

While the Directorate General of Trade Remedies (DGTR) recommends the duty, the revenue department takes the final decision on implementing it.

In international trade parlance, dumping occurs when a country or firm exports a commodity at a price lower than the price of that product in its domestic market.

Dumping affects the price of that product in the importing country, affecting the margins and profits of manufacturing firms.

As per global trade norms, a country is allowed to levy duty on such dumped products to provide equal opportunity to domestic manufacturers.

In India, the duty is levied only after a thorough investigation by a quasi-judicial body like the DGTR.

The duty is aimed at ensuring fair trade practices and providing equal opportunities for domestic producers as compared to foreign producers and exporters.

(Except for the title, this story has not been edited by NDTV staff and is published from a syndicated feed.)