India Starts Probe into Increased Imports of Chemical from South Korea

New Delhi (PTI): India has launched an investigation to determine whether a significant increase in imports of a chemical used in the plastics industry from South Korea has affected domestic producers. A complaint in this regard has been lodged by KLJ Plasticizers Ltd seeking the full withdrawal of duty privileges for imports of ‘non-phthalate Plasticizers in the form of Dioctyl Terephthalate (DOTP) and Diethylhexyl under the agreement. cyclohexane (DEHCH) from Korea.

The application was made under the bilateral safeguards rules of the India-Korea free trade agreement. Under the agreement, India gave customs duty privilege to this product. The agreement was implemented in 2010.

The applicant claimed that imports had increased both in absolute and relative terms due to the gradual reduction and elimination of the duty.

In a trade agreement, two countries either significantly reduce or eliminate import duties on the maximum number of goods traded between them.

According to a notification from the Ministry of Commerce’s Directorate General of Trade Solutions (DGTR), the applicant stated that the increase in imports was causing “serious harm” to the domestic industry.

The increase rate of imports is above the increase rate of demand.

“Having determined that there is sufficient prima facie evidence to justify the initiation of a safeguards investigation, the official considers it appropriate to initiate the investigation,” he said.

In the investigation, will DGTR determine whether to import from Korea? Whether it constitutes increased imports due to the gradual reduction and abolition of customs duties and whether the increased imports cause or threaten to cause serious damage to the domestic industry.

The final call for the implementation of the tax will be made by the ministry of finance. The mandate helps ensure a level playing field for the domestic industry in terms of pricing chemicals in the domestic market.