India Slaps Anti-Dumping Duty on Plastic Machinery from China, Taiwan

In an effort to protect domestic industry, India has decided to impose anti-dumping duties on plastic processing machines that are being imported from China and Taiwan. These charges are meant to level the playing field for Indian businesses that are being hurt by the low-priced imports.

Low-Cost Imports Causing Harm

As per a recent government notification, the Ministry of Finance found that these machines were being sold in India at prices lower than their normal value, a practice commonly referred to as dumping. This has led to serious damage to the domestic industry, which is struggling to compete with the unfair pricing.

The investigation concluded that this “material injury” was a result of the dumped imports and not due to any internal inefficiency of local producers.

Duties Range from 27% to 63%

Based on the detailed findings, the Ministry recommended imposing anti-dumping duties ranging between 27% and 63% of the CIF (Cost, Insurance, and Freight) value of the imported machinery. The actual rate will depend on the country of origin, exporter, and the specific manufacturer involved.

These duties will be effective for five years from the date of the official announcement. However, the government has kept the option open to modify, cancel, or extend the duties earlier if required.

Paid in Indian Currency

The notice further clarified that all anti-dumping duties must be paid in Indian rupees, regardless of the currency used for the original import.

What Are Anti-Dumping Duties?

To put it simply, anti-dumping duties are extra taxes placed on goods that are imported at prices lower than fair market value, especially when such pricing causes harm to domestic producers. These duties help ensure that local businesses are not wiped out by unfair foreign competition. By taking this step, India aims to support its own plastic machinery industry and discourage harmful trade practices from abroad.