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Anti-dumping probe into import of sodium cyanide

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.

AboutDescription
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 DumpingLegal 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-dumpingCan reduce international competition for domestic companies producing similar goods.
Difference from Countervailing DutyCountervailing 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 DutyValidity is 5 years from the date of imposition, extendable for another 5 years through sunset or expiry review investigation.
Authority administering Anti-Dumping dutyDirectorate General of Trade Remedies, under the Ministry of Commerce and Industry
About Sodium CyanideIt 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.