The Directorate General of Trade Remedies (DGTR), under the commerce ministry, had started the probe in August 2019, following a complaint filed by Hindustan Organic Chemicals Ltd and Deepak Phenolics Ltd.
They had filed an application before the directorate for initiation of ‘safeguard’ investigation and imposition of ‘safeguard duties’ concerning imports of phenol into India.
The complainants had alleged that increase in the imports was impacting the companies.
“Since the applicants have withdrawn the application, it is considered appropriate not to continue with the present investigation. Accordingly, …the director general, hereby, terminates the present safeguard investigation concerning imports of phenol into India,” DGTR has said in a notification.
It said that, while the directorate was in the process of examining all the issues raised by various interested parties, and making a conclusion on the basis of analysis, the applicants in their letters dated March 20 this year and March 23 withdrew the application for imposition of the duty.
They had stated that the current jurisprudence and interpretation of safeguard law does not remedy the increased import of phenol into India and the applicants are, therefore, seeking remedy under the anti-dumping laws.
In a safeguard probe, the directorate sees whether the import has increased significantly and has caused or threaten to cause serious injury to domestic producers of like and/or directly competing products.
If found that the jump in imports has impacted domestic players, the directorate recommends safeguard duty on the imports. The Finance Ministry takes the final call to impose the duty.