India begins probe on circumvention of countervailing duty on imports of saccharin

India has started a probe on alleged circumvention of countervailing duty imposed on saccharin — used in a range of industries such as food, beverage and pharma — imported from China, according to a notification.

The investigation was started by the Directorate General of Trade Remedies (DGTR), under the Commerce Ministry, following a request for the same by Swati Petro Products and Blue Jet Healthcare.

The applicants have alleged that the existing countervailing duties imposed on the Chinese imports are being circumvented through the rerouting of such shipments from Thailand.

“They have alleged that saccharin exported from Thailand is not produced in Thailand but is of Chinese origin and merely routed through Thailand to avoid payment of countervailing duty,” according to the notification. The applicants have contended that there are no genuine manufacturing facilities for saccharin in Thailand.

The Ministry of Finance, on February 25 last year, imposed countervailing duties on the product imported from China. These duties are still in force on imports from China.

“On the basis of the application filed by the applicants... the authority hereby initiates an anti-circumvention investigation,” the DGTR said in a notification.

If DGTR finds that the duty is being circumvented by Thailand, it would recommend the extension of countervailing duty on Bangkok. The finance ministry takes the final decision to extend the duty. Saccharin is used in a variety of industries such as food and beverage, personal care products, table top sweeteners, electroplating brighteners, and pharmaceuticals.The applicants have requested to extend the existing countervailing duty on imports from Thailand.

“The applicants have alleged that the countervailing duty imposed on imports of Saccharin originating in or exported from China PR is being circumvented through imports consigned from Thailand,” according to the notification.