Govt proposes continuing anti-dumping duty on Chinese tiles

Directorate General of Trade Remedies, Commerce & Industry Ministry’s investigation arm, has said there is a “positive” evidence of likelihood of dumping of ‘Glazed/Unglazed Porcelain/Vitrified Tiles in polished or unpolished finish with less than 3 per cent water absorption’. This would be deleterious for the domestic industry, if the existing anti-dumping duty would be removed. Therefore, the ministry has recommended continuation of anti-dumping duty on Chinese tiles for five more years.

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The DGFT has  concluded that the Chinese tiles continue to be exported to India at prices below normal value resulting in continued dumping. “The volume of imports has remained low because of antidumping duty in force. However, the volume of import is likely to increase significantly, considering the low and dumped price at which goods have been exported from China to third countries, significant surplus capacities in China coupled with further addition to capacities,” the directorate noted. It has recommended US$ 1.87 per sq meter tonne duty but it is up to the Finance Ministry to take the call on the final rate.

The investigation was initiated after a request from Gujarat Granito Manufacturers Association, Indian Council for Ceramic Tiles and Sanitaryware, Morbi Ceramics Association, and Sabarkantha District Ceramics Association. 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 and hits margins and profits of manufacturing firms in the importing country. Imposition of anti-dumping duty is permissible under the World Trade Organization (WTO) to provide a level-playing field to domestic manufacturers and ensuring fair trading practices.

Chinese tiles are used for used for covering floors and walls in buildings. They are also known as Porcelain Tiles. They are made up of the denser clay to get impervious and more hard and durable material.