On March 19, the Directorate General of Trade Remedies (DGTR), a division of the Indian Ministry of Commerce, issued three notifications regarding three types of chemical products imported from China. One of the notifications is an update on the “sunset review” of Aceto Acetyl Derivatives, also known as aromatic compounds, imported from China on March 17. The other two notifications suggest initiating an anti-dumping investigation and conducting a review on whether to continue implementing anti-dumping tariffs.
The “sunset review” is an important procedure in India’s trade remedy system, mainly aimed at reassessing the anti-dumping duty or countervailing duty before they expire. Its core purpose is to determine whether not extending these tariffs would lead to dumping or subsidy behavior reoccurring and causing harm to Indian industries.
This investigation is designed based on Article 11 of the World Trade Organization’s Anti-Dumping Agreement, as the agreement stipulates that anti-dumping duties should generally expire after five years and require a review before expiry to decide on an extension.
The anti-dumping investigation on aromatic compounds by India dates back to August 2020 and lasted for one year. The investigation results were released in August 2021, recommending the imposition of tariffs. The expiry date for the anti-dumping tariff is October 13, 2026.
The chemical compound “1-(3,5,5,6,8,8-hexamethyl-6,7-dihydronaphthalen-2-yl) ethenone” is primarily used as a fixative and booster in fragrances. It is used in men’s perfumes, powdery musk fragrances, can be layered with other musks, and is also used in fabric softeners, deodorants, soaps, and other functional fragrance products.
Indian company Keva Fragrances Private Limited complained that the low-priced products from mainland China have caused substantial harm to its business. According to the documents provided by the company, it is the sole manufacturer of this product in India.