G. Srinivasan

New Delhi, Oct. 3 For the first time the Designated Authority in the Commerce Ministry has initiated anti-subsidy probe on imported sodium nitrite from China, even as a mid-term review of the anti-dumping duty on the same product from China is also under way.

Official sources told Business Line here that the Chinese authorities have been called for consultation by the Authority as to why an anti-subsidy duty could not be levied against sodium nitrite being exported from China.

Sodium nitrite is a white crystalline powder widely finds application in pharmaceutical industries, dye industries, lubricants, construction chemicals, meat processing and textiles.

It is primarily used in dye industries for producing various types of intermediates, pharma industry for production of anlagen, theophylline and caffeine.

Anti-subsidy probe is initiated because the domestic industry has complained that it is not only cheap import that has priced itself out of the market but also the exporting country has heavily subsidised the subject goods which had rendered the playing field uneven for the domestic industry to stand on its own.

The sources said that while dumping margin in the anti-dumping duty of the product under review from the subject country was 55.74 per cent, the subsidy margin is as high as 64.13 per cent.

Where at the end of the twin probes the dumping and subsidy margins established remains the same, it would be a different situation as to which one is to be imposed, the sources added.

The Authority recommended definitive anti-dumping duty on import in November 2004 and a subsequent sunset review re-established that the dumping has not abated and recommended continuation of the definitive duty.

Now, there is also a mid-term review of the dumping duty initiated.

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