The Directorate General of Trade Remedies (DGTR), the trade investigation arm of the Ministry of Commerce, has recommended extending anti-dumping duties on aluminium foil imports from China, Thailand, Malaysia, and Indonesia for an additional five years. The measure aims to safeguard domestic manufacturers from unfair trade practices and predatory pricing. The recommendation covers aluminium foil measuring 80 microns and below, which is widely utilized across pharmaceutical packaging, food preservation, and industrial manufacturing sectors.
Investigation Initiated Following Complaints by Domestic Producers
The sunset review investigation was triggered by formal petitions submitted by leading Indian aluminium foil manufacturers, including Hindalco Industries, SRF Altech, Raviraj Foils, LSKB Aluminium Foils, Shree Venkateshwara Electrocast, and Shyam Sel and Power Ltd. These domestic entities reported that despite existing tariff barriers, a surge in low-priced imports continued to undercut local prices and erode profitability. Following an extensive inquiry, the DGTR concluded that allowing the existing duties to lapse would likely result in the recurrence of dumping and material injury to the domestic industry.
Details of Proposed Duties and Import Impact
According to the official notification issued by the DGTR, the recommended anti-dumping duty ranges between USD 93.53 per tonne and USD 976.99 per tonne, depending on the country of origin and specific producer. Specifically, Chinese suppliers face proposed duties ranging from USD 506.81 to USD 976.99 per tonne, while duties for Thai exporters range between USD 93.53 and USD 339.93 per tonne. Imports from Malaysia and Indonesia face recommended levies of USD 850.45 and USD 422.28 per tonne, respectively. The investigation highlighted that Chinese exporters maintain significant excess capacity and remain highly export-oriented, posing a persistent threat of market flooding if protective measures are removed.
Role of the Finance Ministry and Final Decision
While the DGTR functions as the primary investigative authority determining trade distortion and domestic injury, the formal implementation of anti-dumping tariffs rests with the Ministry of Finance. The Central Board of Indirect Taxes and Customs (CBIC) under the Finance Ministry will review the findings and issue a final notification within three months. Anti-dumping duties were initially imposed on these foreign imports in September 2021 for a five-year period. Once ratified by the Finance Ministry, the extended duties will remain active for another five years, reinforcing the government’s commitment to ensuring a level playing field for local manufacturers under the Make in India initiative.
