India Imposed Anti-Dumping Duty on Sodium Cyanide from EU, Japan, Korea and China

Anti-Dumping Duty on Sodium Cyanide

The Directorate General of Trade Remedies (DGTR) India, has recently imposed anti-dumping duties on sodium cyanide (NaCN) imports from European Union, Japan, Korea and China. The anti-dumping duties will be valid for a time period of five years. It will be applicable on sodium cyanide originating in or exported from these countries

What is sodium cyanide and its uses?

Sodium cyanide is a white, crystalline compound with the chemical formula NaCN. It is a water-soluble solid that is highly toxic and poisonous. It can be lethal in small doses by ingestion, inhalation, skin contact, or eye contact. The oral lethal dose in humans is estimated to be 150-300 mg. Sodium cyanide has various industrial applications, including:

• Extracting gold and silver from their respective ores
• Electroplating and heat treatment of metals
• Manufacturing insecticides, dyes, pigments, and bulk drugs
• Organic syntheses, agrochemicals, nylon intermediates, gelatin compounds, ore flotation, and pharmaceutical intermediates

Why did India initiate an anti-dumping probe on sodium cyanide imports?

India initiated an anti-dumping probe (31st March, 2023) on sodium cyanide imports from European Union, Japan, Korea and China, following a complaint by Indian Industries, Hindusthan Chemical Company and United Phosphorous Limited (UPL).

The applicants submitted that the dumping of sodium cyanide from these countries caused material injury to the domestic industry, suppressing prices and leading to financial losses.

What did the Directorate General of Trade Remedies (DGTR) recommend?

The Directorate General of Trade Remedies (DGTR) on inquiry recommended imposing a definite anti-dumping duty on sodium cyanide imports from European Union, Japan, Korea and China for a period of five years.

The DGTR’s investigation found sufficient evidence that sodium cyanide from these countries was being dumped in the Indian market, causing injury to the domestic industry.

What were the key findings of the DGTR’s investigation?

The DGTR’s investigation revealed several key findings:

• Dumping of sodium cyanide started once UPL set up its plant, and there was no demand-supply gap.
• Import prices from the subject countries declined during the investigation period.
• Dumped imports suppressed the prices of the domestic industry, forcing them to sell at lower prices to increase market share.
• The landed price of imports was below the selling price of the domestic industry during the investigation period.
• The dumping margin determined for each subject country was above the de-minimis level and significant.

What is the difference between anti-dumping duty and countervailing duty?

Anti-dumping duty is imposed on imports priced substantially lower than the normal value, while countervailing duty is imposed on goods that received government subsidies. The primary difference is that anti-dumping duty addresses unfair pricing practices, and countervailing duty addresses unfair subsidies.

What is the sunset clause for anti-dumping duty?

The sunset clause for anti-dumping duty states that the validity of the duty is five years from the date of imposition, extendable for another five years through a sunset or a expiry review investigation.