India may impose anti-dumping duty on imports of Polystyrene from Iran, Malaysia, Singapore, Chinese Taipei, UAE, and the US in order to guard the domestic players from cheap imports made from these countries.
Polystyrene is a foamy material and it is used in refrigerators and air conditioners to have a very low density for thermal insulation.
Ineos Styrolution India Ltd and Supreme Petrochem Ltd had applied to imposition of the anti-dumping duty on imports of polystyrene from these mentioned nations.
After conducting an investigation, the commerce ministry’s investigation arm Directorate General of Trade Remedies (DGTR) has recommended the imposition of the anti-dumping duty on imports of Polystyrene from these six countries.
The recommended duty will range between $35 per tonne to $474 per tonne. The directorate in a notification said that in its investigation, it has established that dumping is happening and it was impacting the domestic players.
Imports of the Polystyrene from these six countries have increased from 16915 tonnes in 2015-16to 30037 tonnes during the period of probes (January-December 2018).
However, in international trade parlance, dumping takes place when a firm exports an item at a price lower than the actual price of that product within its domestic market, and dumping impacts the price of that product in the importing country by hitting margins and profits of manufacturing firms.
As per the global trade norms, a country is allowed to impose tariffs on such dumped products in order to provide the same level of the platform to its domestic manufacturers, and the duty can be imposed only through an investigation done by a quasi-judicial body, like DGTR, in our country.
Further, this imposed duty also aims to ensure fair trading practices among players and creating the same level-playing field for domestic producers.
Polystyrene is majorly used in appliances like refrigerators and air conditioners, stationery, household articles, extruded insulation foam, electrical housings, toys, and food packaging