GOI has initiated a probe into alleged dumping of rubber variants used for leather goods by the EU, South Korea and Thailand. The Govt initiated after complaints from Reliance Industries and Indian Synthetic Rubber. The move is aimed at protecting domestic players in the sector against cheap imports. The Directorate General of Anti-Dumping and Allied Duties (DGAD), an arm of the Commerce Ministry, has begun investigating imports of Styrene Butadiene Rubber (SBR) of 1,500 series and 1,700 series from these three regions.

SBR is mainly used in footwear, rubberized fabric, tyres, tread, conveyor belt, hose and shoes, water pipes and auto accessories.

Indian Synthetic Rubber Pvt is a joint venture of Indian Oil Corporation, TSRC, Taiwan, and Marubeni Corporation, Japan. The company is stated to have commenced commercial production in February 2014. It has claimed that the dumping of the product in the country is materially retarding establishment of the domestic industry.

Reliance Industries, the co-applicant, has also set up a plant for production of the product under consideration, but is yet to announce its commercial production.

Why countries do Anti-Dumping?

• Countries start anti-dumping probes to determine whether their domestic industries have been hurt because of a surge in cheap imports. As a counter measure, they impose duties under the multilateral regime of WTO.
• The duty is aimed at ensuring fair trading practices and creating a level-playing field for domestic producers vis-a-vis foreign producers and exporters.

India has already imposed an anti-dumping duty on several products, to tackle cheap imports from countries, including China.

• Venture means a new activity, usually in business, that involves risk or uncertainty.
• Surge means a sudden powerful forward or upward movement.
• Multilateral means agreed upon or participated in by three or more parties.
• Regime means a government.
• Vis-a-vis means in relation to or with regard to.