In their submission to DGTR, FIPPI and ILMA said that the fact submitted for the continuation of Anti Dumping Duty on imports of Melamine from China for another five years are not true. The both bodies have filed their submission and mentioned, ‘If any view has to be formed, please also review the Landed cost of Melamine with ADD throughout the 5 year tenor the fixed duty has remained in force on Chinese or other Melamine imports and analyse how much excess cost over NIP has been incurred by our industry and how much unjust enrichment has accrued to the applicant domestic industry.
While it is true that the import landed cost during 2019- 20 did not fetch superlative gins, the weighted average of 5 years would unambiguously demonstrate that the applicant has realized or fetched at least an average extra of Rs. 15,000/MT over its NIP. This retards the growth of our industry and further investments therein. The consumers of final products in India eventually pay for the excess that is without any authority of law.’
It is noted that “Investigation of anti-dumping duty imposed on the imports of Melamine originating in or exported from China PR”, Gujarat State Fertilizers and Chemicals Limited presented a Sunset Review to DGTR (Directorate General of Trade Remedies) and recommended to continued imposition of definitive anti-dumping duties on imports of Melamine from China for a further period of 5 years to provide a level playing field to the domestic industry.
The applicant said that they were earlier operating with a production capacity of around 15,000 MT. Considering the increasing demand of Melamine and the demand supply gap in the country; they have set up third plant of 40,000 MT for production of Melamine with huge investment. With the expanded capacity, domestic industry could have met about 55-65% of the demand but its share has been left restricted to below 30%. It is noted that Anti-dumping duties on Melamine from China were first imposed in the year 2004.