India Imposes Anti-Dumping Duty on Water Treatment Chemical Imports from China and Japan
India has imposed an anti-dumping duty of up to $986 per tonne on imports of trichloroisocyanuric acid (TCCA) from China and Japan for a period of five years. This chemical is widely used as a disinfectant, bleaching agent, and in water treatment processes, including swimming pool sanitation and industrial water treatment.
The Central Board of Indirect Taxes and Customs (CBIC) issued a notification enforcing this duty, following recommendations from the Directorate General of Trade Remedies (DGTR), the investigative arm of the commerce ministry. The DGTR concluded that imports of TCCA from China and Japan were being dumped into the Indian market at unfairly low prices, causing material injury to the domestic industry.
Bodal Chemicals Limited, currently the sole producer of TCCA in India, is expected to benefit from this measure. The company anticipates an increase in its annual turnover by Rs. 50 to Rs. 60 crore starting from the financial year 2025–2026, as the anti-dumping duty is likely to reduce competition from underpriced imports.
Anti-dumping duties are trade remedies permitted under World Trade Organization (WTO) rules. They are imposed to counteract the negative effects of dumping, which occurs when manufacturers export goods at prices lower than their domestic market or production costs. Such practices can harm industries in the importing country by undercutting local producers, leading to potential closures and job losses. By imposing these duties, India aims to ensure fair competition and provide a level playing field for its domestic manufacturers.
The process leading to the imposition of anti-dumping duties involves a thorough investigation by the DGTR to assess the extent of dumping and its impact on the domestic industry. Based on the findings, the DGTR recommends appropriate measures, which are then reviewed and implemented by the finance ministry. In this case, the investigation revealed significant price undercutting by imports from China and Japan, leading to suppressed prices for the domestic industry and financial losses. Consequently, the anti-dumping duty was deemed necessary to protect the domestic market.
It’s important to note that anti-dumping duties are not intended to restrict imports or unjustifiably increase product costs. Instead, they aim to rectify unfair pricing practices and ensure that imports are priced fairly relative to domestic products. This measure is expected to encourage fair trade practices and support the sustainability of domestic industries facing unfair competition from dumped imports.
