The Directorate General of Trade Remedies (DGTR) has recommended reducing Anti Dumping Duty to 161 UDS from 331 USD on import of Melamine from China in their Sunset Review.
Mr. R K Vyas, Legal Advisor of ILMA says to The Ply Reporter that The DGTR has taken certain positive steps in the investigation such as increasing transparency and reducing the duty. The normal value (a benchmark against which export prices are judged) has been disclosed and duty has been reduced.
However, the proposed duty would adversely affect the small and medium scale enterprises which are users of the product. It is also strange that a domestic industry that claims to suffer injury has increased its capacity by 3.5 times. The exercise will only promote and encourage the monopolistic behavior of the domestic industry, he added further.
It had noted that The Directorate General of Trade Remedies (DGTR) began a sunset review of an antidumping probe on the imports of melamine from China in September 2020, based on a complaint by Gujarat State Fertilizers & Chemicals Limited. Antidumping duty was first imposed on the product in 2004 and was extended after multiple reviews.
The DGTR had said at that time that there was prima facie evidence of dumping and consequential injury to the domestic industry on account of volume effect of significant imports, low production, capacity utilization, sales and market share and price effect due to positive and significant price undercutting and price underselling. This had led to losses, cash losses and negative return on capital employed. The Finance Ministry had extended anti-dumping duty on melamine originating in or exported from China, up to March 31, 2021.
Melamine is used for making melamine formaldehyde resin, which in turn is majorly used in producing Laminates, Plywood, MDF, Particle Boards etc. Melamine formaldehyde resins used for good hardness, resistance to scratch, stain, water and heat.