India proposes safeguard duty on carbon black imports from China

07 August 2012 08:19  [Source: ICIS news]

KOLKATA (ICIS)--India’s Director General of Safeguards (DGS) has made final recommendations for levy of safeguard duty on import of carbon black from China, an official in Ministry of Commerce said on Tuesday.

The safeguard duties proposed were 30% ad valorem in the first year, 25% in the second year and 20% in the third year, the official said.

The Revenue Department under the Ministry of Finance being the designated authority to notify the levies, it would do so following a review meeting of a Committee of Secretaries (CoS) scheduled for later this month, he added.

The safeguard duties were in response to a petition filed by the Association of Carbon Black Manufacturers (ACBM) and two of its members, Phillips Carbon Black limited and Hi-tech Carbon Limited, which together accounted for over 80% of total Indian production of carbon black.

The Indian Director General for Anti-Dumping and Allied Duties (DGAD) was currently going through a mid-term review (MTR) of anti-dumping duty on carbon black imports from China, Iran, Malaysia, Thailand and Russia.

According to the recommendation of DGS, the current anti-dumping duty will be deductible from the safeguard duty, if it was applicable depending on the origin of the commodity, the official said.

DGAD’s review was in response to a petition filed by Automotive Tyre Manufacturers Associations (ATMA), which claimed that there had been significant change in market demand-supply dynamics and import of carbon black.

The petition said these significant changes did not warrant continuation of the anti-dumping levy, according to the associations’ filing before the anti-dumping authority.

Anti-dumping duty on carbon black at rates ranging between $ 0.1--$0.4 per kg was imposed in 2010 but ACBM claimed that higher imports continued through 2011 and 2012 resulting in `injury’ to domestic industry and loss of market share justifying its demand for safeguard duty.

According to filings before Department of Chemicals and Petrochemicals, Indian domestic production of carbon black fell from 163,458 tonne during April-June 2011 to 148,188 tonne during July-September 2011 and further to 139,746 tonne in October-December 2011.

According to data available with Director General for Commercial Intelligence & Statistics (DGCI&S) under Ministry of Commerce, carbon black imports from China increased from 13,994 tonne in 2008-09 to 70,193 tonne in 2011-12.


By: Ajoy K Das
+65 6780 4359



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