New Delhi: India has begun a crucial probe into alleged dumping of liquified natural gas (LNG) fuel tanks from China following a complaint by a domestic player. The tanks are used to contain and carry methane gas in large vehicles such as trucks, the commerce ministry said in a notification.
The commerce ministry’s investigation arm, directorate general of trade remedies (DGTR), is probing the dumping of liquified natural gas (LNG) fuel tanks as imports are allegedly hurting the margins of the domestic industry. Inox India Ltd has filed an application seeking the imposition of anti-dumping duty, stating that the cheap imports are causing material injury to the domestic industry.
Generally, anti-dumping probes are being conducted by countries to determine whether domestic industries have been hurt because of a surge in cheap imports. If the said probe confirms that the dumping has caused material injury to domestic players, the DGTR would recommend the imposition of anti-dumping duty on these imports. The finance ministry takes the final decision to impose duties.
“On the basis of the duly substantiated written application submitted by the domestic industry and having reached satisfaction based on the prima facie evidence submitted by the domestic industry about dumping of subject goods. The Authority, hereby, initiates an anti-dumping investigation,” the DGTR has said in a notification.
As a countermeasure, they impose these duties under the multilateral regime of the Geneva-based World Trade Organization (WTO). 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.
India has already imposed anti-dumping duty on several products to tackle cheap imports from various countries, including China. Imports of these tanks stood at $93.6 million in 2023-24, while it was $42.7 million during April-October this fiscal and it was $84.7 million in 2022-23.
