Central Govt publishes Final Findings in Anti-Dumping Investigation of Liquid Epoxy Resin Imports [Read Order]
The DGTR recommended the imposition of anti-dumping duty on Liquid Epoxy Resin imports from China, Korea RP, Taiwan, and Thailand.
Resin - imports - Taxscan
Resin - imports - Taxscan
The Central Government, through the Directorate General of Trade Remedies (DGTR), has published its final findings in the anti dumping investigation concerning imports of Liquid Epoxy Resin originating from China, Korea RP, Taiwan, and Thailand.
The probe was initiated following complaints from the domestic industry regarding unfairly low-priced imports causing injury to Indian manufacturers.
The DGTR examined market trends between April 2019 and March 2023. It noted that while demand for Liquid Epoxy Resin, a critical raw material used in paints, coatings, adhesives, and electronics, grew consistently, domestic producers struggled due to significant price undercutting by exporters from the subject countries. The investigation assessed key indicators such as sales volume, market share, profitability, return on capital employed, and employment levels.
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According to the findings, imports surged from the four countries during the period of investigation, capturing a large portion of the Indian market. The landed price of imports was consistently below the selling price of the domestic industry, leading to price suppression and erosion of profits for Indian producers. The DGTR concluded that these imports caused material injury to the domestic industry.
The authority rejected arguments from opposing parties that the domestic industry’s problems were linked to internal inefficiencies or unrelated market factors. Instead, it held that dumped imports were the primary reason for the adverse financial performance of Indian producers.
Based on these conclusions, the DGTR recommended the imposition of anti-dumping duty on Liquid Epoxy Resin imports from China, Korea RP, Taiwan, and Thailand. The recommended duty has been structured to bridge the gap between the fair selling price and the landed value of imports, thereby ensuring a level playing field for domestic manufacturers.
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The final findings will now be examined by the Ministry of Finance, which will decide on the notification and levy of duties. If accepted, the duties will remain valid for five years, unless reviewed earlier.
Industry analysts expect the imposition of duties to provide much-needed relief to domestic producers, potentially improving capacity utilization and profitability in the medium term. However, downstream users of epoxy resins, particularly in electronics and coatings, are concerned about potential cost escalations.
With India’s manufacturing sector under pressure from global competition, the outcome of this decision is expected to have significant ramifications.
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