India begins probe into Chinese PVC imports

metro india news  I new delhi

India has initiated a countervailing duty investigation into imports of PVC Suspension Resin from China, following complaints from domestic manufacturers who allege that subsidised Chinese products are being dumped in the Indian market at unfairly low prices.

The investigation has been launched by the Directorate General of Trade Remedies (DGTR), the trade remedial arm of the Commerce Ministry. The move comes after an application was jointly filed by Chemplast Cuddalore Vinyls, DCM Shriram and DCW Ltd, all major domestic producers of PVC resins.

In a notification, the DGTR said it has initiated an anti-subsidy investigation after finding prima facie evidence of subsidisation and consequent injury to the domestic industry. The applicants have alleged that Chinese producers and exporters of PVC Suspension Resin are benefiting from subsidies provided at multiple levels by the Chinese government, enabling them to export the product to India at prices that undercut local manufacturers.

PVC Suspension Resin is widely used across sectors, including the production of pipes, fittings, bottles, cables and other plastic goods. Industry players have argued that cheaper imports have led to price suppression and financial strain on domestic producers.

The DGTR will now examine the existence, degree and impact of the alleged subsidisation. Based on its findings, it may recommend the imposition of a countervailing duty to offset the subsidies and remove injury to Indian manufacturers. If approved by the Finance Ministry, such duties would be levied to create a level playing field for domestic players.

In a separate development, the DGTR has also initiated an anti-absorption investigation concerning anti-dumping duties already imposed on imports of the Chinese herbicide Glufosinate and its salts.

The application in this case was filed by Superform Chemisuies, UPL Ltd, Astral Life India, United Phosphorus (India) LLP and UPL Sustainable Agri Solution. The companies have alleged that Chinese exporters have absorbed the existing anti-dumping duty, effectively neutralising its intended impact.

The authority will examine whether the duty has been absorbed and may recommend modifications to the quantum or form of the anti-dumping duty to ensure its effectiveness.