DGTR initiates countervailing duty probe on a Chinese synthetic rubber

New Delhi, Aug 30 (KNN) The Directorate General of Trade Remedies (DGTR), an arm of the commerce ministry, has initiated a countervailing duty investigation into increased imports of a Chinese synthetic rubber – Fluoroelastomers.

Fluoroelastomers is used in sectors including industry, automotive and aerospace.

The duty probe has been initiated following a complaint from Gujarat Fluorochemicals.

The move aims to protect domestic players from the increase in imports that are subsidized by the neighbouring countries.

Gujarat Fluorochemicals has filed an application before the DGTR alleging subsidisation of the product from China and requested for initiation of an anti-subsidy investigation for levy of countervailing duties on the imports.

The applicant has alleged that the producers/exporters of the product have benefited from the actionable subsidies provided at various levels by the Chinese government, including the governments of the different provinces and municipalities, the DGTR has said in a notification.

The alleged subsidies consist of direct or potential direct transfer of funds or liabilities.

The applicant has claimed that subsidised imports of the product are materially retarding the establishment of the domestic industry.

The authority prima facie finds "sufficient evidence" of subsidisation of the goods from China, injury to the domestic industry and causal link between the alleged subsidisation and injury exist to "justify initiation of an anti-dumping investigations" to determine the existence, degree and effect of subsidisation and to recommend the amount of countervailing duty," it said.