India may impose anti-dumping duty of up to $8.71 per kg on Amoxycillin, an anti-biotic medicine, from China to ringfence domestic players from cheap imports.
Aurobindo Pharma had filed the application before the Directorate General of Anti-dumping and Allied Duties (DGAD) for initiation of probe into the import.
In its findings, the DGAD has concluded that Amoxycillin is entering Indian market from China at “dumped prices”.
Due to this dumping, performance of the domestic industry has deteriorated and “the injury suffered by the domestic industry is significant and material”, the DGAD has said in a notification.
The authority has recommended imposition of anti-dumping duty to remove the effect of the dumped import, it added. The suggested duty ranged between $2.83 and $8.71 per kg.
While the DGAD recommends the duty, the finance ministry imposes it.
Import of Amoxycillin from China increased to 1,255 tonnes during October 2014 and September 2015, from 506 tonnes in 2012-13. It is used to reduce development of drug-resistant bacteria.
Countries initiate anti-dumping probe to determine if the domestic industry has been hurt by flooding of below-cost import. As a counter measure, they come up with duties under the multi-lateral WTO regime.
Anti-dumping steps are taken to ensure fair trade and provide a level-playing field to the domestic industry. They are not a measure to restrict import or cause an unjustified increase in cost of products.