Extension of anti-dumping duty on import of aroma chemicals

India: The Central Board of Excise and Customs (CBEC) had imposed anti-dumping duty on the import of chemicals in March 2010 for five years. In April 2015, the import duty was again extended till March 22, 2015. The Directorate General of Anti-Dumping and Allied Duties has recommended the continuation anti-dumping duties imposed on the imports of Coumarin' after a 'Sun Set Review' (SSR) investigation. Coumarin possesses fragrance of newly mown hay and is similar to vanilla. This chemical is used in the preparation of fragrance compounds, which are used the production of soaps, detergents, cosmetics, incense sticks, and fine fragrances. The import duty will be levied at the rate of USD14.02 per kilogram of 'Coumarin of all types' imported from China.

TechSci Research depicts that extension of anti-dumping duty on import of chemicals will protect domestic producers of the aromatic compound Coumarin. Owing to this, the unorganised players in aromatic chemicals market will benefit who will focus more on manufacturing and selling products that are cheap compared to imported ones. However, Indian consumers prefer more of imported products, and hence the import market of aromatic chemicals will be affected.