Expressing concern that the phthalic anhydride industry has been gravely impacted by dumped imports from Korea, Taiwan and Israel, the Indian Chemical Council (ICC) has sought speedy relief to the industry.

The ICC said that the Department of Chemicals and Petrochemicals (DCPC) recommending levy on imports of the product from Korea, Taiwan and Israel, the industry is still facing threat.

\"Your department has already recommended early and favourable action to the Directorate General of Anti-Dumping And Allied Duties. However, the industry continues to face serious threat from dumped imports as there is still no relief - either interim or final,\" the ICC said in a letter to the DCPC.

\"In recent months, the sufferings of the domestic industry have intensified. If adequate relief measures are not provided, the dumped imports could cause permanent damage to the phthalic anhydride and other allied industries that are dependent on it,\" it said.

\"We request you to kindly recommend to the Directorate General of Anti-Dumping And Allied Duties to ensure speedy relief to the phthalic anhydride industry,\" the ICC said.

Earlier, while recommending for levy of anti-dumping duty on import of phthalic anhydride from Korea, Taiwan and Israel, the DCPC had told the DGAD, “Market share of imports from these countries increased substantially. As a direct consequence, the market share of Indian producers declines. Imports from these countries are posing threat of material injury to the domestic industry.”

The Indian phthalic anhydride industry is slated to be harmed and heavily impacted by the dumping for Korea, Taiwan and Israel. China and Pakistan have already imposed anti-dumping duties to the extent of 13 per cent and 27 per cent respectively against these countries to protect their domestic production.

The present custom duty levied on the import of phthalic anhydride is 7.5 per cent. It is freely importable in the country. There is safeguard duty imposed on the import of phthalic anhydride since January 29, 2009.

According to the DCPC, “import is taking place at cheaper rates, resulting in surge in imports while capacity utilisation is slowed down.”

Phthalic anhydride manufacturers had said that Korea, Taiwan and Israel are aggressively dumping phthalic anhydride into India and so it is necessary for levying safeguard duty on its import.