Facts for Prelims (FFP)
Source: ET
Context: India has initiated an anti-dumping probe into imports of poisonous chemical sodium cyanide from China, the European Union, Japan and Korea following a complaint by domestic players.
| About | Description |
| What is Dumping? | The goods are exported by a country to a foreign country at a price lower than the price charged in its own home market. |
| Legality of Dumping | Legal under WTO rules unless it can be shown to have negative effects on domestic producers in the importing country. |
| What is Anti-dumping? | The tariff imposed by a domestic government on foreign imports at a price lower than the domestic market price. |
| Long-term Impact of Anti-dumping | Can reduce international competition for domestic companies producing similar goods. |
| Difference from Countervailing Duty | Countervailing duty is imposed on goods that received government subsidies, while anti-dumping duty is imposed on imports at prices substantially lower than normal value. |
| Sunset Clause for Anti-dumping Duty | Validity is 5 years from the date of imposition, extendable for another 5 years through sunset or expiry review investigation. |
| Authority administering Anti-Dumping duty | Directorate General of Trade Remedies, under the Ministry of Commerce and Industry |
| About Sodium Cyanide | It is a white crystalline odourless solid or powder. It releases hydrogen cyanide gas, a highly toxic chemical asphyxiant that interferes with the body’s ability to use oxygen. |
| Usage | Sodium cyanide is used for the extraction of gold and silver from their respective ores, manufacturing insecticides, dyes, pigments, and bulk drugs. |
