India has decided to investigate against the alleged Ceftriaxone Sodium dumping sterile by Chinese firms.
Nectar Life Sciences and Sterile India have filed complaints against Chinese firms for alleged dumping of a pharma raw material (Ceftriaxone Sodium dumping) 1.
The domestic manufacturers have raised the issue at the Commerce Ministry’s investigation arm Directorate General of Trade Remedies (DGTR). As per the reports, the companies have requested the imposition of anti-dumping duty on the import of Ceftriaxone Sodium
sterile.
Ceftriaxone Sodium Sterile is an Active Pharmaceutical ingredient that is used for formulating a wide range of drugs. This includes drugs used for the treatment of lower respiratory tract, skin, and intra-abdominal infections.
The DGTR claimed this probe would determine the existence, degree, and effect of the alleged dumping of the stated product from China. This action was fueled by the companies’ evidence to prove that Ceftriaxone Sodium dumping has caused material injury to the domestic industry.
The period of investigation is between April 2019 to March 2020. But the data of the April 2016 to April 2019 period is also being scrutinized for this.
What is dumping?
In the case of dumping, the DGTR is expected to recommend the
anti-dumping duty. This will adequately compensate for the injury
caused to the domestic industry. This amount, however, can only be
imposed by the Finance Ministry.
In International Trade, dumping refers to the export of a product at a lower price than its price in the indigenous market. This, in turn, influences the price of the product in the importing product and the profits of the manufacturing firms.
Per the global trade norms, the importing country is
permitted to impose tariffs on such dumped products. This helps to relieve the injury caused to the domestic manufacturers. The anti-dumping duty is imposed after a quasi-judicial body investigates this thoroughly. This duty is aimed at establishing fair trade practices.
The imposition of the anti-dumping duty is permissible
under the World Trade Organization regime. Both India and China are members of this organization that deals with global trade norms.