DGFT Finds No Material Injury to Domestic Industry, Keeps Chinese Metronidazole Imports Anti-Dumping Duty-Free [Read Order]

DGFT Finds - Material Injury - Domestic Industry- Chinese Metronidazole -Imports Anti-Dumping Duty-Free-TAXSCAN

The Directorate General of Foreign Trade (DGFT) has released its final findings following the investigation outlined in Case No. A.D (OI)-03/2022, which focused on imports of Metronidazole from China PR. After thorough examination, the DGFT determined that no substantial harm had occurred as a result of these imports, leading to the conclusion that no Anti-dumping duty should be imposed.

Aarti Drugs Limited, representing the domestic industry, initiated this anti-dumping investigation by submitting an application in accordance with the Customs Tariff Act, 1975, and the Anti-dumping Rules. This application pertained to the import of “Metronidazole” (referred to as the “product under consideration” or “PUC”) from China PR (the “subject country”).

Upon reviewing the compelling prima facie evidence presented by the applicant, the Authority issued a public notice through Notification No. 6/3/2022-DGTR, dated 30th September 2022, published in the Gazette of India – Extraordinary. This notice marked the initiation of the investigation as per Section 9 of the Act, coupled with Rule 5 of the AD Rules, 1995. Its purpose was to determine the existence, extent, and impact of alleged dumping of the subject goods and to recommend the appropriate level of anti-dumping duties, should they prove necessary to alleviate the alleged harm to the domestic industry.

The “Metronidazole” in question, originating from or exported from China PR, falls under Chapter 29 of the Customs Tariff Act, 1975, classified under subheading 293329 of the Tariff Classification, and is imported under the HS Code 29332920. It’s important to note that this classification is indicative and not binding regarding the scope of the investigation.

Following a thorough examination of arguments presented by various stakeholders and considering the aforementioned facts, circumstances, and analysis, the Authority has concluded that the domestic industry is not experiencing substantial harm due to imports from the subject country, as stipulated in the Anti-Dumping Rules. Consequently, the Authority does not find it appropriate to recommend the imposition of anti-dumping duties on imports of the subject goods from the subject country.

In accordance with Section 9A and 9B of the Customs Tariff Act, along with Rule 14(b), Rule 17(1)(a)(ii), and Rule 11(2) of the Anti-Dumping Rules, the Designated Authority has decided to terminate the ongoing investigation, which was initiated through Notification No.F.No.6/3/2022-DGTR, dated 30th September 2022. Any appeal against this decision shall be directed to the Customs, Excise, and Services Tax Appellate Tribunal, as stipulated by the Customs Tariff Act, 1975.

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