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May 05, 2021 11:30 AM

India imposes TDI antidumping duties on imports

Urethanes Technology International
Simon Robinson
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    NEW DELHI—At a time of global shortages and high prices, India's government has imposed import duties of between $102 and $368/metric ton on 80:20 TDI, the most commonly traded grade of the product.

    The tariffs apply to products made specifically by Covestro, Borsodchem and Sadara, as well as imports from the European Union, UAE and Taiwan.

    The country's Directorate General of Trade Remedies (DGTR) proposed the tariffs in January after Gujrat Narmada Valley Fertilisers & Chemicals (GNFC), India's only indigenous producer, complained in December 2019.

    The duties have been imposed after a six-month period of prices was taken as the basis of the complaint. GNFC argued that duties were needed because "prices from the subject countries declined have declined drastically in a short period and as a result of which the performance of the domestic industry deteriorated drastically." However, it said that "there is no risk on the continuity of business operations" but it was "currently operating with losses, ADD (antidumping duty) will not discourage imports, but it will ensure that imports are a fair-prices and not harming the Indian industry."

    The importers argued that the six-month period is too short, and a full year should have been taken.

    Among the companies facing the duties, Covestro argued that its $20 million investment in a crosslinker plant for TDI at Ankelshwar, Gujarat, no longer will be viable, and the downstream industry would suffer as a result if duties were imposed. The DGTR rejected these and other arguments.

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