India has initiated an investigation into the dumping of aluminum foil for domestic and industrial use from China following a complaint by domestic manufacturers, led by Hindalco.

The products under investigation for dumping include foil used in homes, for making capacitors, batteries, beverage cans, and packing cigarettes. The applicants have requested for the retrospective imposition of anti-dumping duty.

Last year, the import of aluminium foil products subject to anti-dumping duty was $876 million, with $491.8 million (56%) originating from China. In 2021-22, imports of these products amounted to $373.5 million.

The companies, in their application to the Directorate General of Trade Remedies (DGTR), have argued that China should be treated as a non-market economy. They assert that Chinese producers must demonstrate that market economy conditions prevail in the industry producing the goods in question.

The applicants submitted they made efforts to determine normal value (of production) on the basis of price or constructed value in a market economy third country. However, they could not get reliable information in absence of any publicly available information.

The complainants have said in their application before the DGTR that volume of the aluminum foil products from China has increased in both absolute as well as in relative terms while the capacity utilization of the domestic industry has declined.

The price depression caused by the dumped imports have been preventing the domestic industry from increasing its prices to recover the full cost and achieve a reasonable rate of returns, the domestic industry has said. If the injury to the domestic industry is established then the DGTR can recommend the quantum of the anti–dumping duty. The final decision for imposition of the duty is taken by the Department of Revenue.

Govt begins probe into ‘dumping’ of foil imports