India has decided to continue with the anti-dumping duty (ADD) on Chinese synthetic rubber (fluoroelastomer) to guard domestic players from cheap imports from the neighbouring country. 

 

“Having concluded that there is likelihood of continuation of dumping and injury if the existing anti-dumping duties are allowed to cease, the Authority is of the view that continuation of duty is required on the import of PUC from the subject country,” the Directorate General of Trade Remedies (DGTR), Govt of India, said in a notification dated Oct 19, 2020. Earlier, the anti-dumping duty was extended till 27 October 2020.  

 

It further says that the evidences on record show that even though imports have declined from the subject country, dumping of the subject goods from China PR continues and imports of subject goods are being made at dumped prices and prices below the non-injurious price. “The information on record also shows the landed prices of subject imports is undercutting and underselling the prices of the domestic industry during POI. The imports from subject country have led to significant decline in profitability and financial losses during period of investigation. Thus, all these parameters indicate that in the event of cessation of ADD, the exporters in the subject country are likely to intensify export of dumped product in India at dumped prices, leading to intensified injury to the Domestic Industry,” it adds.

 

The Authority notes that the original anti-dumping investigation was initiated in 2 Jan 2018 in respect of the imports of fluoroelastomers originating in or exported from China PR on the application filed by Gujarat Fluorochemicals. Anti-dumping duty was imposed on subject country on 28 January 2019 which is during period of investigation. Consequently, the imports from subject country have declined during the period of investigation in absolute terms and in relation to production and consumption.

 

The DGAD found that there was “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. 

 

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.