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Finance ministry may impose anti-dumping duty on antibiotic ceftrixone sodium sterile imported from China
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Laxmi Yadav, Mumbai
September 27 , 2021
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The Union finance ministry is likely to impose anti-dumping duty on antibiotic ceftrixone sodium sterile imported from China to provide a level playing field for domestic industry vis-a-vis foreign manufacturers and exporters.
Ceftriaxone sodium sterile is an active pharmaceutical ingredient (API) used for formulation for treating disease like lower respiratory tract infection, skin and skin structure infection, pelvic inflammatory disease, intra-abdominal infection, uncomplicated gonorrhoea infection, and surgical prophylaxis. It is a lifesaving drug.
The Directorate General of Trade Remedies (DGTR), an investigation arm of Union ministry of commerce and industry, had initiated anti-dumping probe into import of ceftrixone sodium sterile API from China on September 24, 2020 following a complaint filed by Nectar Life Sciences and Sterile India Co. Ltd commanding a major proportion (49 per cent) in the total domestic production in India.
The complaint was supported by Aurobindo Pharma Ltd.
Ceftrixone sodium sterile was earlier subjected to anti-dumping duty. The duty was first imposed in 2007. The DGTR conducted sunset review investigation and notified the final findings on May 20, 2014 and definitive anti-dumping duty was continued by the ministry of finance vide Customs Notification No. 39/2014 dated August 14, 2014. The duty on the subject goods expired on August 13, 2019.
The domestic industry filed a fresh application seeking imposition of antidumping duty contending that the producers in China are dumping the product and the same is causing injury to the domestic industry.
The DGTR conducted an anti-dumping investigation from April 2019 to March 2020. The examination of trends in the context of injury analysis covered the periods April 2016-March 2020.
Despite imposition of antidumping duty, the import of ceftrixone sodium sterile from China has increased over the years. A total of 7,340 metric tonnes of ceftrixone sodium sterile have been imported from China in 2016-17 followed by 20,540 metric tonnes in 2017-18, 68,800 metric tonnes in 2018-19 and 73,570 metric tonnes during the period of investigation i.e. April 2019 March 2020.
The DGTR in its preliminary findings on September 23, 2021concluded that domestic industry is suffering low-capacity utilization and losses on account of import of the product from China.
The authority noted that though the domestic industry's inventory level has increased, the performance of the industry has significantly deteriorated in respect of profits, cash profits and return on capital employed due to the Chinese import.
With an aim to protect domestic industry, DGTR has recommended imposition of anti-dumping duty of US$ 12.91 per kg in its preliminary findings.
While DGTR recommends the duty, the finance ministry takes the final call to impose the same.
The imposition of anti-dumping duty is permissible under the World Trade Organization (WTO) regime. India and China are members of this Geneva-based organisation, which deals with global trade norms. Authority is of the view that imposition of the anti-dumping duty is required to offset the dumping and the consequent injury to the domestic industry.
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