DGTR Recommends Anti-Dumping Duty on Medical Rubber Gloves from Thailand and Malaysia
The Directorate General of Trade Remedies (DGTR), the investigation arm of the Ministry of Commerce, has recommended an anti-dumping duty on medical examination rubber gloves imported from Thailand and Malaysia.
The suggested duty is between US$442 and US$565 per one lakh (1,00,000) pieces, for a period of five years.
The DGTR found that the Indian glove industry, which is still at an early ("nascent") stage, suffered "material injury" (serious harm) because of these cheap, dumped imports. It also found that the duty is not against public interest and would not hurt users much.
The investigation began after an application by two Indian makers, Navco Industries and Wadi Surgicals.
The final decision to impose the duty rests with the Ministry of Finance.
In a separate finding, the DGTR recommended continuing an existing anti-dumping duty of US$1,296 per tonne on "untreated fumed silica" from China. This material is used in medicines, food and farm chemicals.
Directorate General of Trade Remedies (DGTR)
The Directorate General of Trade Remedies, or DGTR, is the Indian government office that investigates unfair or harmful imports. When foreign goods enter India at unfairly low prices, or suddenly flood the market, Indian makers can complain to the DGTR. It studies the case like a judge, and if the complaint is proved, it recommends a special extra import duty. The DGTR only recommends; the Ministry of Finance decides whether to actually impose the duty.
The glove case shows the DGTR process at work: two Indian makers applied, the DGTR proved dumping, injury and a causal link, checked public interest, and recommended company-wise duties of US$442 to US$565 per lakh pieces for five years. The fumed silica decision is a sunset review result. In both cases, the Finance Ministry will now decide whether to impose the duties.
Trade Remedies: Safeguard Measures, Anti-Dumping, and Countervailing Duties
Trade remedies are special, temporary import duties or limits that WTO rules allow a country to use to protect its own industry from harmful imports. There are three types: anti-dumping duty against goods sold at unfairly low prices, countervailing duty against goods made cheap by foreign government subsidies, and safeguard measures against a sudden surge of imports. All three need an investigation first, and in India the DGTR carries it out.
The glove duty is an anti-dumping duty, the most used of the three trade remedies. It targets only Thailand and Malaysia, the two countries found to be dumping, not glove imports from every country.
- Product: medical examination rubber gloves; countries: Thailand and Malaysia
- Recommended anti-dumping duty: US$442 to US$565 per one lakh pieces, for 5 years
- Applicants: Navco Industries and Wadi Surgicals
- DGTR finding: domestic industry at a nascent stage suffered material injury; duty not against public interest
- Final decision: Ministry of Finance
- Separate case: continuation of anti-dumping duty of US$1,296 per tonne on untreated fumed silica from China
- DGTR: set up in 2018; attached office of the Department of Commerce
- Legal basis of anti-dumping duty: Section 9A, Customs Tariff Act, 1975