Vitamin C from China is entering the domestic market at a price below the cost of sales and the selling price as a result anti-dumping duty has to be imposed on the product. This was concluded by the Directorate General of Trade Remedies (DGTR) after a thorough probe.

The domestic industry has been impacted due to the dumped imports, DGTR has said in a notification.

"Accordingly, definitive anti-dumping duty...is recommended to be imposed for five years from the date of the notification to be issued by the Central Government, on all imports of goods...originating in or exported from China," it added.

The DGTR has recommended US $ 3.2 per kg and US $ 3.55 per kg duty on imports. The final decision on this matter is taken by the finance ministry.

Dumping impacts the price of that product in the importing country, hitting the margins and profits of the manufacturing firms in the domestic market and makes them uncompetitive.

According to global trade norms, a country is allowed to impose tariffs on such dumped products to provide a level-playing field to domestic manufacturers. The duty is imposed only after a thorough investigation by a quasi-judicial body, such as DGTR, in India.

The duty aims to provide a level-playing field for the domestic industry and safeguarding them against cheap imports from foreign players and importers.

India and China are members of the World Trade Organisation (WTO), and the levying of anti-dumping duty is allowed under the WTO rules.