India to slap anti-dumping duty on Chinese silk

30 Dec '15

2 min read

In a move aimed at protecting the domestic silk industry from cheap in-bound shipments, the government is likely to impose anti-dumping duty of $1.85 per kg on imports of mulberry raw silk from China.

After an investigation, the Directorate General of Anti-dumping and Allied Duties (DGAD) concluded that “mulberry raw silk of grade 3A and below” have been exported to India from China below its normal value and due to this, the domestic industry has suffered “material injury”, according to an agency report.

“The authority (DGAD) recommends imposition of definitive anti-dumping duty... so as to remove the injury to the domestic industry,” the Commerce Ministry said in a notification. DGAD, the nodal agency under the commerce ministry for such investigations, has recommended an anti-dumping duty of $1.85 per kg on imports of the silk from China.

Imports from China have increased considerably from 12.63 lakh kg in 2010-11 to 22.17 lakh kg during the period of the investigation (April 2013 to June 2014).

Countries initiate anti-dumping investigations to determine if the domestic industry has been hurt by a surge in below-cost imports. As a counter-measure, they impose duties under the multilateral World Trade Organization regime. Anti-dumping measures are taken to ensure fair trade and provide a level-playing field to the domestic industry. They are not a measure to restrict imports or cause an unjustified increase in cost of products. (SH)

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