Commerce Ministry for imposing anti-dumping duty on pharma API from China

To protect domestic players against low-cost imports, the commerce ministry has recommended imposing anti-dumping duties on a pharma raw material from China, Ceftriaxone Sodium Sterile. After conducting its investigation, the Directorate General of Trade Remedies (DGTR) proposed the duty after establishing that API (active pharmaceutical ingredient) from China was shipped at dropped prices into India, causing injury to the domestic industry.

In a notification, the directorate stated, “The authority advises the imposition of anti-dumping tax on the imports of subject goods…” Ceftriaxone Sodium Sterile is an API used in the synthesis of drugs to treat infections of the lower respiratory tract, skin and skin structure infections, and surgical prophylaxis. Following a complaint from Nectar Life Sciences and Sterile India about the dumping of the chemical, the DGTR commenced an investigation.

The duty rate is USD 12.91 per kilogram. The final decision on whether or not to impose duty is made by the finance minister. In a separate announcement, the DGTR announced that it has launched a sunset study to determine whether anti-dumping charges on China aluminium foil should be maintained.

The World Trade Organization (WTO) allows for the implementation of anti-dumping charges. The obligation is intended to ensure fair business practices and to level the playing field for domestic producers and exporters in respect to foreign producers and exporters.