India may impose anti-dumping duty of up to $0.4 per kg on TDI, a chemical used in foam making, from China, Japan and Korea to guard domestic players against cheap imports.

Gujarat Narmada Valley Fertilizers & Chemicals Ltd had filed the application before the Directorate General of Anti- dumping and Allied Duties (DGAD) for initiation of anti- dumping investigations on imports of 'Toluene Di-Isocyanate' (TDI).

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In its preliminary findings, the DGAD has concluded that the chemical was exported from these three countries at below their normal value due to which domestic industry has suffered material injury.

The authority has recommended “imposition of provisional anti-dumping duty” to remove the injury to the domestic players, DGAD said in a notification.

The suggested duty was ranged between $0.14 per kg and $0.4 per kg.

Imports of the chemical from these countries have increased from 30,097 tonnes in 2012-13 to 32,115 tonnes in 2015-16.

While DGAD recommends the duty, Finance Ministry imposes it.

TDI is used for production of a certain variety of foam, furniture cushion, protective pads for sports and medical use, automobiles seats, packing of electronic items and others.

Countries initiate anti-dumping probes to determine if the domestic industry has been hurt by a surge in below-cost imports. As a counter-measure, they impose duties under the multi-lateral WTO regime.

Anti-dumping measures are taken to ensure fair trade and provide a level-playing field to the domestic industry. They are not a measure to restrict imports or cause an unjustified increase in cost of products.

Unlike the safeguard duty, which is levied in a uniform way, anti-dumping duty varies from company to company and country to country.