India Region

India Launches Anti-Dumping Investigation into Resorcinol Imports from China and Japan

15 January 2024, New Delhi: India has taken a significant step towards protecting its domestic chemical industry by initiating an anti-dumping investigation into the import of Resorcinol from China and Japan. The Directorate General of Trade Remedies (DGTR) recently issued an updated notification outlining the details of the ongoing probe. The investigation seeks to determine whether the import of Resorcinol at unfairly low prices has caused material injury to Indian manufacturers and if corrective measures are necessary to safeguard the industry.

The investigation was triggered by a complaint filed by Atul Limited, one of India’s leading producers of Resorcinol. The company alleged that imports from China and Japan are being dumped into the Indian market at prices below fair value, causing financial harm to the domestic industry. The complaint, filed under the Customs Tariff Act, 1975, and the Anti-Dumping Rules, 1995, emphasizes that these practices undermine the competitiveness of Indian producers. Atul Limited contends that it is the sole domestic producer of Resorcinol and has only minimal involvement in importing the product. During the investigation period of 2021-2022, the company reported negligible imports, limited strictly to trial purposes.

The DGTR has preliminarily accepted the validity of Atul Limited’s petition, confirming that it complies with the provisions of Rule 5(3) of the Anti-Dumping Rules. This acceptance establishes Atul Limited as a representative of the domestic industry for the purposes of the investigation. The probe aims to address concerns about the adverse impact of unfair trade practices on Indian manufacturers and to determine whether imposing anti-dumping duties is warranted.

As part of the investigation, the DGTR has released an updated list of stakeholders involved in the case. This comprehensive list includes domestic manufacturers, exporters, importers, and associations representing various interests in the Resorcinol market. Notable stakeholders include The Embassy of Japan as a government representative, Sumitomo Chemicals Co. Ltd. as a producer and exporter, Techno Waxchem Pvt. Ltd. as an importer and user, and SONGWON Industrial Group as another producer and exporter. The list also features trading firms, chemical manufacturers, and associations representing importers and users of Resorcinol. A detailed list of stakeholders is available in Annexure-I of the DGTR notification.

The DGTR has set specific guidelines for submissions by stakeholders. All registered interested parties are required to share non-confidential versions of their submissions with both the DGTR and other stakeholders. Submissions must be made via designated email addresses and must include key details such as party status, the nature of the submission, and the date of filing. The DGTR has also requested that any parties who believe they have been omitted or incorrectly listed as stakeholders notify the directorate within seven days of the notification’s publication.

The investigation’s outcome could have significant implications for the domestic chemical industry. If the DGTR determines that imports of Resorcinol from China and Japan are being dumped and are causing material injury to Indian manufacturers, anti-dumping duties may be imposed. These duties are designed to offset the effects of unfair pricing and to create a level playing field for domestic producers. By addressing these issues, the government aims to protect Indian industries from the adverse effects of unfair international trade practices while promoting fair competition in the market.

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