Heeding to a request by manufacturers for anti-dumping duty on phthalic anhydride, the Department of Chemicals and Petrochemicals (DCPC) has recommended the levy on imports of the product from Korea, Taiwan and Israel.

"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," it said in a letter to the Directorate General of Anti-Dumping and Allied Duties.

"So, the DCPC recommends for levy of anti-dumping duty on import of phthalic anhydride from Korea, Taiwan and Israel," it said.

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.