India has imposed anti-dumping duty on the Chinese antibacterial drug Ciprofloxacin Hydrochloride to guard the domestic industry against cheap imports from the neighbouring country. The duty was imposed following a recommendation by the commerce ministry's investigation arm Directorate General of Trade Remedies (DGTR).
DGTR in its probe had concluded the product has been exported to India from China below its normal value, which has resulted in dumping and in turn impacting the domestic industry. "The anti-dumping duty imposed under this notification shall be levied for a period of five years (unless revoked, superseded or amended earlier) from the date of imposition of the provisional anti-dumping duty, that is, September 2, 2020, and shall be payable in Indian currency," a department of revenue notification has said.
The duty imposed was in the range of USD 0.91 per kg to USD 3.27 per kg. Imports of the product from China increased to 377 tonnes during the period of investigation (April 2018 – June 2019) from 117 tonnes in 2015-16.
While DGTR recommends the duty, the finance ministry takes the final call to impose the same. Ciprofloxacin Hydrochloride is used to treat different types of bacterial infections, including skin infections, bone and joint infections, respiratory or sinus infections, urinary tract infections, and certain types of diarrhoea. It acts as an anti-infective agent and an antibacterial drug.
In international trade parlance, dumping happens when a country exports an item at a price lower than the price of the product in its domestic market. Dumping impacts the price of the product in the importing country, hitting margins and profits of manufacturing firms.
According to global trade norms, a country is allowed to impose tariffs on such dumped products to provide a level-playing field to domestic manufacturers. The duty is imposed only after a thorough investigation by a quasi-judicial body, such as DGTR, in India. The imposition of anti-dumping duty is permissible under the World Trade Organization (WTO) regime. The duty is aimed at ensuring fair trading practices and creating a level-playing field for domestic producers vis-a-vis foreign producers and exporters.
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