India may impose anti-subsidy duty on imports of a particular kind of rubber from South Korea as the commerce ministry has recommended for the same after concluding an investigation.
The commerce ministry’s investigation arm Directorate General of Trade Remedies (DGTR) has conducted the probe to see whether the subsidy programmes of South Korea for exports of “Styrene Butadiene Rubber” to India is impacting the domestic industry.
The DGTR concluded that the product has been exported to India from Korea is subsidised and due to this, the domestic industry has suffered material injury.
“The authority is of the view that imposition of duty is required to offset subsidization and injury. Therefore, authority considers it necessary and recommends imposition of anti-subsidy duty on imports,” DGTR has said in a notification.
The finance ministry takes the final decision to impose the duty.
The recommended duty was in the range between 1.89 per cent and 4.06 per cent on the landed value of the product in India.
Indian Synthetic Rubber Pvt Ltd and Reliance Industries Ltd had filed an application before the authority for initiation of anti-Subsidy investigation concerning the imports from Korea.
The product finds its primary usage in the production of tyres and tyre retread compounds. The other areas of usage include houseware mats, shoe sole and heels, chewing gum, food container sealants, conveyor belts, adhesives, automobiles mats, brake and clutch pads, and rubber toys.
{{/usCountry}}The product finds its primary usage in the production of tyres and tyre retread compounds. The other areas of usage include houseware mats, shoe sole and heels, chewing gum, food container sealants, conveyor belts, adhesives, automobiles mats, brake and clutch pads, and rubber toys.
{{/usCountry}}Countervailing or anti-subsidy duty is a country-specific duty which is imposed to safeguard domestic industry against unfair trade subsidies provided by the local governments of the exporting nations.