India has launched an investigation into the suspected dumping of PVC paste resin, which is used in making artificial leather and other technical textiles, from the European Union (EU) and Japan, as per a recent notification.

The Directorate General of Trade Remedies (DGTR), the investigation arm of the commerce ministry, is looking into the dumping as it is said that imports are driving down domestic sector margins. The inexpensive imports are seriously harming the domestic industry, according to Chemplast Sanmar Ltd., which has filed an application to impose anti-dumping duties. "On the basis of the duly substantiated written application submitted by the domestic industry and having reached satisfaction based on the prima facie evidence submitted by domestic industry about the dumping of subject goods...the Authority, hereby, initiates an anti-dumping investigation," the DGTR has said in a notification.

The DGTR would suggest imposing an anti-dumping charge on these imports if it is proven that the dumping has seriously harmed domestic players. The imposition of duties is ultimately decided by the finance minister. Anti-dumping investigations are carried out by countries to check if their local industries are being harmed due to a sudden increase in cheap imports. To address this, they impose anti-dumping duties under the rules set by the World Trade Organisation (WTO), which is based in Geneva. These duties aim to promote fair trade and create a level playing field between local producers and foreign exporters. India has already imposed anti-dumping duties on a number of products to deal with cheap imports from countries like China.

Last month, the Directorate General of Trade Remedies (DGTR) suggested imposing an anti-dumping duty of up to USD 707 per tonne on imports of PVC paste resin from six countries, including China, for a period of five years. The goal is to protect local producers from unfair competition.