The duty varies between $5 and $46 per cubic meter and was imposed back in 2015 on fibre board used in furniture and other related industries.
The Directorate General of Trade Remedies had sought for an extension of the duty on “Plain Medium Density Fibre Board of thickness 6mm and above” after initiating a review in February this year on complaints of some companies that cheap imports were impacting local industry.
“Notwithstanding anything contained in paragraph 2, the anti-dumping duty imposed under this notification shall remain in force up to and inclusive of the 20th January, 2021, unless revoked, superseded or amended earlier,” a notification issued by the department of revenue said on Tuesday.
In international trade parlance, dumping happens when a country or a firm exports an item at a price lower than the price of that product in its domestic market.
Dumping impacts price of the product in importing country, hitting margins and profits of manufacturing firms.
According to global trade norms, a country is allowed to impose tariffs on such dumped products to provide a level-playing field to domestic manufacturers.
The duty is imposed only after a thorough investigation by a quasi-judicial body, such as DGTR, in India.
The duty is aimed at ensuring fair trading practices and creating a level-playing field for domestic producers vis-a-vis foreign producers and exporters.