India begins investigation into “dumping” of cheap tiles from China, Vietnam and Taiwan

Domestic tile makers in India complain of loss of business from China, Taiwan, Vietnam

India (India)ne China (China), Taiwan (Taiwan) and Vietnam (Vietnam) have launched an anti-dumping investigation against the import of a certain type of tile. These tiles are mostly used for making floors of houses and shops. The Directorate General of Trade Remedies ( DGTR), the investigative arm of the Ministry of Commerce, has started this investigation into the alleged dumping of ‘Vinyl Tiles’ after a complaint from domestic companies. Many times countries initiate anti-dumping investigations if domestic industry is getting hurt due to increase in cheap imports. The definition of dumping laws in the Cambridge dictionary is to sell imported goods at a price below their cost of production.

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According to a DGTR notification, Welspun India Limited, Welspun Flooring Limited and Welspun Global Brands Limited had filed a petition before the directorate for imposition of anti-dumping duty on a certain tile imported from China, Taiwan and Vietnam.

The applicants have alleged that the dumping of the product imported from these countries is affecting the domestic industry.

“Anti-dumping investigation has been initiated against the import of tiles after being satisfied on the basis of certified written application by the domestic industry and on the basis of first evidence submitted by the industry regarding dumping,” the Directorate General said.

If it is proved that the dumping has caused material loss to the domestic companies, then the DGTR will recommend imposition of anti-dumping duty on its imports. However, the final decision will be taken by the Finance Ministry.

Significantly, India has already imposed anti-dumping duty on many products to deal with cheap imports from many countries including China.

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