New Delhi: In a move to shield domestic manufacturers from unfair competition, India has imposed a five-year anti-dumping duty on imports of liquid epoxy resins from China, Saudi Arabia, Taiwan, and South Korea. The decision, effective immediately, follows an investigation into the pricing of these imports and their impact on the Indian market.
Liquid epoxy resins are essential components in various industries, including industrial and automobile paints, adhesives, and electronics. The investigation was initiated after domestic producers lodged complaints, alleging that the influx of low-priced imports was suppressing prices and causing material injury to their businesses.
The Directorate General of Trade Remedies (DGTR) conducted the probe and concluded that liquid epoxy resins were indeed being exported to India at dumped prices. This dumping, according to the DGTR, was causing significant harm to domestic players in the form of reduced profits and adverse financial performance.
The DGTR determined that a clear causal link existed between the dumped imports and the injury suffered by the domestic industry. Following these findings, the DGTR recommended the imposition of definitive anti-dumping duties to safeguard Indian producers from unfairly priced imports.
The anti-dumping duty will be levied as a fixed amount per metric ton, varying depending on the exporter and producer. For instance, for producers from China, the duty ranges from \$37 to \$258 per MT. South Korean producers face duties between \$184 and \$483 per MT, while those from Thailand will be subject to duties ranging from \$119 to \$331 per MT. A duty of \$115 per MT will be imposed on all producers from Taiwan, and \$175 per MT on all producers from Saudi Arabia.
The Indian government believes that the imposition of these duties will ensure fair competition and stable pricing for this essential manufacturing input. The move is expected to help the domestic industry maintain its investments and promote self-reliance. The government has stated that the anti-dumping duty will not restrict imports, but rather ensure that they occur at fair prices. Liquid epoxy resins can still be imported from other countries, such as those in the European Union, America, Brazil, and Japan, or purchased from domestic manufacturers.
Notably, anti-dumping investigations concerning epoxy resins are also underway in the United States and the European Union, targeting some of the same countries. This global trend suggests concerns about oversupply and the potential diversion of dumped goods to markets with less stringent trade regulations. The DGTR considered this factor when recommending the duty, suggesting that without it, subject imports would likely be further dumped into the Indian market.
The investigation period for the imposition of anti-dumping duties was from January 1, 2023, to December 31, 2023, while the injury period included the fiscal years 2020-21, 2021-22, and 2022-23.
