The Dyestuff Manufacturers? Association of India (DMAI) has called for a modification in the advance authorisation scheme as it allows traders to resort to dumping and thereby cause damage to Indian producers.

In a letter to the Department of Chemicals and Petrochemicals (DCPC), DMAI said anti-dumping duties being imposed by the government are required to be paid on all imports into the country with the exemption of imports made by EOU, SEZ, imports under advance authorisation scheme and duty free import authorisation scheme.

"It was clearly understood while granting these exemptions that the goods so imported would be permitted only on end use basis and imported product would not be allowed to be sold in the domestic market," it said.

Further, duty free import authorisation scheme provides that a manufacturer can import an input after export of the resultant product and also, the license can be transferred even to a trader.

"Thus duty free import authorisation scheme permits import of products attracting anti-dumping duties by a trader. Such imports made by the trader can then be sold in the market. The scheme thus allows the traders to continue to resort to dumping and cause injury to the Indian producers," the DMAI said.

"Therefore the advance authorisation scheme is to be modified to provide that no exemption from anti-dumping duties shall be permissible if the license has been transferred to a trader."

The DMAI requested the DCPC to take corrective action to set right the anomaly in this connection.