India has initiated an investigation into the dumping of aluminium foil for domestic and industrial use from China, following a complaint filed by domestic manufacturers, led by Hindalco.
The investigation targets various aluminium foil products used in households and industries, including those used in capacitors, batteries, beverage cans, and cigarette packaging. The complainants have urged for the retrospective imposition of anti-dumping duty on these products.
According to data, imports of aluminium foil products subject to anti-dumping duty amounted to USD 876 million last year, with USD 491.8 million (56 per cent) originating from China. However, in 2021-22, imports of these products decreased to USD 373.5 million.
The applicants argue that China should be treated as a non-market economy, requiring Chinese producers to demonstrate market economy conditions prevailing in the industry producing the goods in question.
Despite efforts to determine the normal value of production based on prices or constructed values in a market economy third country, the applicants faced challenges due to the lack of reliable information publicly available.
In their application to the Directorate General of Trade Remedies (DGTR), the complainants highlighted the surge in volume of aluminium foil products from China, leading to a decline in capacity utilisation of the domestic industry. The dumping of imports has resulted in price depression, hindering the domestic industry from raising prices to recover costs and achieve reasonable returns.
If the DGTR establishes injury to the domestic industry, it can recommend the imposition of anti-dumping duty. However, the final decision on the imposition of duty rests with the Department of Revenue.
The probe signifies the government's commitment to safeguarding the interests of domestic industries and ensuring fair trade practices in the aluminium foil market.