Two local companies have filed petitions with the Indian authority to examine the anti-dumping duty imposed on the shipment of a textile chemical from Bangladesh, officials said.
The move began this month after the Indian Department of Revenue, on June 14, slapped an anti-dumping duty from $ 27.81 to $ 91.47 per tonne at the end of the year. export of hydrogen peroxide, a chemical used as a bleaching agent for textiles, Bangladesh.
The Anti-Dumping and Allied Counter-Terrorism Directorate of the neighboring country recommended sanctions for the import of chemicals from five countries, including Bangladesh, after concluding that imports affected the domestic industry, # 39; India.
An anti-dumping duty is a protectionist tariff imposed by a government on imported articles on the basis that the products are below fair market value.
Dumping is a process in which a company exports a product at a lower price than it usually charges on its own domestic market. To protect local businesses and markets, many countries impose strict duties on the products they consider to be dumped on their domestic market.
"We appealed the review because the anti-dumping duty was imposed unfairly on our product," said Mohammad Akramuzzaman, chief financial officer of Samuda Chemical Complex Limited, a concern of the Chittagong TK Group.
Samuda is one of three local companies that export hydrogen peroxide to India and other neighboring countries after meeting the requirements of the domestic market for 60,000 tonnes per year. year.
Tasnim Chemical, a concern of Meghna Group of Industries, and ASM Chemical are the other two companies.
Samuda and ASM Chemical were subject to an anti-dumping duty of $ 47.90 and Tasnim Chemical $ 27.81 for each tonne of hydrogen peroxide shipment to India .
Akramuzzaman testified that they had appealed to the Customs, Excise and Tax Court of India and that the date of filing the hearing still needs to be resolved.
"We hired a law firm, APJ-SLG, in India to move us on our behalf."
"In addition, the selling prices of our products have been calculated taking into account our global profits and our production costs," he added.
If another company in Bangladesh wishes to export hydrogen peroxide to India, it will receive an anti-dumping duty of $ 91.47 per tonne, in accordance with the notification.
India accounted for almost half of the 20,000 tonnes of hydrogen peroxide exported from Bangladesh during the 2015-16 fiscal year. A year earlier, the total shipment of the chemical was 17 475 tons, according to Akramuzzaman.
Abdul Karim, Deputy Director General of ASM Chemical, said that the export of hydrogen peroxide would be affected if the anti-dumping duty was not withdrawn.
Local companies also export the chemical to Pakistan, Sri Lanka and Nepal, said Akramuzzaman, adding that the four companies in Bangladesh are producing more than the annual requirement for the chemical.
In addition to the exporters of hydrogen peroxide, four jute millers filed appeals with the Indian authority for the anti-dumping duty review of $ 19-352 per tonne on January 5 of this year.