India launches anti-dumping probe into Chinese aluminium foil imports-DGTR

India has launched an investigation into the import of aluminium foil from China, prompted by complaints from domestic manufacturers. The Directorate General of Trade Remedies (DGTR), under the commerce ministry, is examining allegations of dumping, a practice where products are sold at unfairly low prices in the importing country.

A few Indian companies have submitted a complaint to DGTR, alleging that Chinese aluminium foil imports are causing harm to the domestic industry. The investigation was initiated after the applicants presented initial evidence indicating injury to domestic producers due to the influx of dumped imports.

The product under review is "aluminium foil" excluding variants below 5.5 microns for non-capacitor applications. Ultra-light gauge converted foil, 5.5-7 microns thick and backed with kraft paper or scrim, used in insulation, spices, thermal fluid lines, and tea bags, is also included.

Exclusions consist of etched or formed foils for electrolytic capacitors, aluminium composite panels for facade cladding and signage, clad aluminium foil for automotive cooling systems, foil for beer bottles, and aluminium-manganese-silicon alloys for heat exchangers.

Aluminium foil is vital for food and beverage packaging and falls under customs subheading 7607, entering India under specified codes, facilitating protection, storage, and preparation of edible products.

DGTR's notification signals the beginning of an anti-dumping inquiry to investigate the alleged dumping and its impact on domestic players. If the investigation confirms that dumping has indeed harmed Indian manufacturers, DGTR may recommend the imposition of anti-dumping duties on these imports.

Ultimately, the decision to impose duties lies with the finance ministry. Anti-dumping measures are a means for countries to safeguard their industries against unfair trade practices, in accordance with the rules of the World Trade Organization (WTO). India has previously imposed such duties on various products from different countries, including China, as part of efforts to ensure fair competition and protect domestic producers.