The Directorate General of Trade Remedies (DGTR) has initiated an anti-dumping investigation into the imports of Resorcinol from China and Japan. The investigation aims to determine whether these imports have caused material injury to the Indian domestic industry, specifically targeting the alleged unfair pricing practices by exporters from these countries.

Resorcinol, a chemical compound used widely in the pharmaceutical industry, serves as an antiseptic and disinfectant in the treatment of various skin disorders such as acne, eczema, psoriasis, and warts. It plays a crucial role in topical products due to its therapeutic properties.

Atul Limited, a leading Indian manufacturer of Resorcinol, filed the original complaint triggering the investigation. The company, which claims to be the sole producer of Resorcinol in India, contends that the unfair pricing of imported Resorcinol from China and Japan is adversely impacting its business operations. Atul Limited alleges that these imports are priced below market value, causing significant harm to the domestic industry by creating an uneven playing field.

The DGTR has also updated the list of stakeholders involved in the investigation, which includes domestic producers, exporters, importers, and industry associations. Among the notable entities are The Embassy of Japan (Government Representation), Sumitomo Chemicals Co. Ltd. (Producer/Exporter), Techno Waxchem Pvt. Ltd. (Importer/User), and SONGWON Industrial Group (Producer/Exporter), among others.

The complaint, which is in line with the provisions of the Customs Tariff Act, 1975, and the Anti-Dumping Rules, 1995, has been supported by the DGTR’s preliminary examination. The authority has deemed Atul Limited’s petition to be in compliance with Rule 5(3) of the Anti-Dumping Rules, confirming the company as a legitimate domestic industry claimant.

The investigation will cover historical data from the period 2021-2022, with a particular focus on the limited imports by Atul Limited, which reportedly had minimal involvement in imports for trial purposes. Despite this, the DGTR has moved forward with the inquiry, indicating the severity of the allegations.

Interested parties have been instructed to share non-confidential versions of their submissions with other stakeholders and the DGTR via designated email addresses. Submissions should include specific details such as party status, the nature of the submission, and the date of filing in the prescribed format. Stakeholders who believe they have been omitted or listed incorrectly have seven days from the publication of the notice to notify the DGTR.

The outcome of this investigation could have significant implications for the Indian chemical industry. If the DGTR determines that Resorcinol imports from China and Japan are being dumped and causing material injury, anti-dumping duties may be imposed. These duties are designed to safeguard domestic manufacturers by counteracting the negative impact of unfair trade practices and ensuring fair competition in the marketplace.