NEW DELHI: India is likely to increase import duty on Phthalic Anhydride, a chemical used in insecticides and plastic industry, for two years from South Korea with an aim to guard domestic players from jump in the inbound shipments. The increase in duty was recommended by the commerce ministry’s investigation arm DGTR after concluding a probe into an alleged increase in imports of the chemical from South Korea following complaints by domestic firms.

 

According to a notification issued by the Directorate General of Trade Remedies (DGTR), IG Petrochemicals Ltd and Thirumalai Chemicals Ltd had filed an application for initiation of the bilateral safeguard probe. In its conclusion, the directorate has stated that increased imports of the product have caused “serious injury” to the domestic industry.

 

The investigation on the imports was conducted under India-Korea Comprehensive Economic Partnership Agreement (Bilateral Safeguard Measures) Rules, 2017. It is a kind of a free trade agreement.

 

“The authority recommends increasing the rate of customs duty on imports of subject goods originating in Korea to the level of Most Favoured Nation (MFN) applied rate of customs duty on the subject goods as on the date of application of bilateral safeguard measure or MFN applied rate of customs duty on the subject goods on the day immediately preceding the date of entry into force of the Trade Agreement, whichever is less,” it said.