InvestorQ : What is the latest tariff investigation on the import of aluminium foil from China? Will it impact stocks like Hindalco and NALCO?
Arti Chavan made post

What is the latest tariff investigation on the import of aluminium foil from China? Will it impact stocks like Hindalco and NALCO?

Answer
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3 months ago


With the border tensions simmering with China, the government has initiated a number of trade and dumping reviews of Chinese imports. Shortly after imposing anti-dumping duty on import of Ciprofloxacin HCL from China, the DGTR has now initiated a probe into the alleged dumping of aluminium foil by China, Indonesia, Malaysia and Thailand.

The complaint against such dumping was filed by Hindalco, Raviraj Foils and Jindal India calling for an unbiased investigation into imports of aluminium foil of 80 micron and below. Their allegation was that these were clear cases of dumping by China and other Asian countries where costs are reduced by government support in the form of subsidy.

Under the WTO, a country is allowed to impose tariffs on dumped products to provide a level-playing field to domestic companies, which appears to be the line of argument of the DGTR. The actual anti-dumping duty is approved only if such imported products are impacting domestic industries. This duty is allowed on ground of level-playing field.