The Directorate General of Trade Remedies (DGTR) has recommended the extension of anti-dumping duty for five years on imports of Melamine, used in beauty and utility products, from China to protect the domestic industry from cheap inbound shipments.

"The Authority recommends imposition of anti-dumping duty equal to the lesser of margin of dumping and the margin of injury, so as to remove the injury to the domestic industry. Accordingly, definitive anti-dumping duty equal to the amount US$161 per MT is recommended to be imposed for five years from the date of the Notification,” the DGTR said.

The DGTR has recommended the duty after conducting a sunset review investigation on the imports.

Gujarat State Fertilizers & Chemicals Limited has filed an application on July 25, 2020 before the DGTR for sunset review of anti-dumping investigation concerning antidumping duty on the imports of melamine originating in or exported from China PR.

According to the DGTR, the present anti-dumping duty on Melamine from China PR has been in force for a periodof16years and the present sunset review seeks to extend the same for a further period of 5 years.

After examining submissions of all the interested parties, the DGTR concluded that Imports from China in relation to total imports, demand and production continued to be significant despite the anti-dumping duty being in existence and the dumping and injury margins determined in the POI are Positive.

Moreover, the capacities in China are in far excess of their total domestic consumption There has also been addition in such capacities. There would be significant price undercutting by the imports of subject goods' if the anti-dumping duties were to cease. The dumping margin in the present investigation are not only above the de minimis level but also quite significant. Other countries including US and European Union have also undertaken trade remedial investigations against imports of subject goods from China PR, the DGTR opines.