Government considering anti-dumping duty on dry cell batteries

New Delhi: The government is considering a proposal to levy anti-dumping duty on import of dry batteries from China and Vietnam on complaint that cheap shipments from these countries are hitting domestic producers like Eveready Industries.

The Directorate General of Anti-Dumping and Allied Duties (DGAD) under the Commerce Ministry have initiated the probe into alleged dumping of an "AA Dry Cell Batteries" by China and Vietnam.

Association of Indian Dry Cell Manufacturers has filed the application for investigation on behalf of domestic industry, namely, Eveready Industries India Ltd, Panasonic Energy India, and Indo National Ltd.

The DGAD has said the applicant has provided sufficient evidence of dumping from the two countries. “The authority (DGAD) hereby initiates an investigation into the alleged dumping, and consequent injury to the domestic industry," it has said in a notification.

In the probe, the directorate would determine the existence, degree and effect of alleged dumping and will recommend amount of anti-dumping duty, which if levied would be adequate to remove the injury to the domestic industry.

The DGAD is the nodal agency under the Commerce Ministry for such investigations. The period of investigation is April 2004 - March2015. However, for the purpose of analysing injury, the data of previous three years would also be considered, the notification added.

AA Dry Cell Batteries is primarily used for flashlights, transistors, toys, wall and table clocks, tape recorders, walkman, CD players, cameras, other electronic equipment, post and telegraph, defense and police for their wireless systems and railways for signalling.

While the DGAD recommends the duty, Finance Ministry imposes it. The development assumes significance as India has recently slapped anti-dumping duty of up to USD 316 per tonne on imports of certain steel products from three countries, including China.

Unlike safeguard duties, which are levied in a uniform way, anti-dumping duties vary from product-to-product and from country to country. Countries initiate anti-dumping probes to check if their domestic industries have been hurt because of a surge in cheap imports. As a counter measure, they impose duties within the multilateral regime of the WTO.

Anti-dumping measures are taken to ensure fair trade and provide a level playing field to domestic industry. It is not a measure to restrict imports or cause an unjustified increase in the cost of products.

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