The Directorate General of Trade Remedies (DGTR), under the Ministry of Commerce and Industry, has initiated an anti-dumping investigation concerning the import of Liquified Natural Gas Fuel Tanks (LFT) from China.
The investigation, launched on December 24, 2024, comes after a formal complaint filed by Inox India Limited, alleging that these imports are being sold at unfairly low prices, causing significant harm to the domestic industry.
Background of the Investigation
The investigation was triggered after Inox India Limited, the domestic producer, petitioned for anti-dumping duties on LFTs imported from China. According to Inox India, these imports are allegedly being dumped in the Indian market at prices below their fair value, causing material injury to the local manufacturing sector. Inox claims that the pricing practices of Chinese exporters are suppressing domestic prices and affecting the profitability and market share of local producers.
What is Liquified Natural Gas Fuel Tank (LFT)?
LNG fuel tanks, commonly known as LFTs, are double-walled cryogenic storage tanks used to store liquefied natural gas (LNG) for use in commercial vehicles, particularly trucks. These tanks are essential for the safe storage and transportation of methane gas, which is stored in liquid form at extremely low temperatures and is later converted to gaseous form for combustion in vehicle engines.
LFTs are available in various capacities, ranging from 200 liters to over 750 liters, and they are classified under HS code 7311 00 90.
Key Details of the Investigation
- Product Under Consideration: LFTs, used in large vehicles like trucks, are central to the investigation. The tanks help in maintaining the fuel at the necessary temperature for efficient usage in engines.
- Period of Investigation (POI): The period under review will be from April 1, 2023, to June 30, 2024, covering 15 months, with injury assessment spanning several fiscal years.
- Dumping Allegations: The applicant claims that Chinese exporters have been selling LFTs in India at prices below the fair market value, constituting dumping. The difference between the normal value (based on costs in the subject country) and the export price from China suggests a significant dumping margin.
- Injury Claims: Inox India argues that the increase in low-priced imports has caused price suppression and a drop in market share, affecting their ability to recover costs and achieve a reasonable profit.
Steps Moving Forward
The DGTR will investigate the extent of the alleged dumping and its impact on the domestic industry. If found to be true, anti-dumping duties may be recommended to restore fair trade practices and mitigate the injury to local manufacturers.
Interested parties including exporters, importers, and users of LFTs, are invited to participate in the investigation. They can submit relevant information within 30 days of the notice. The public file for the investigation will be accessible for inspection on the DGTR website.
How the Anti-Dumping Investigation Will Proceed
The investigation follows the procedures set out in the Customs Tariff Act of 1975 and the Anti-Dumping Rules of 1995. Interested parties are encouraged to submit their information in searchable PDF or MS-Word format, with data in MS-Excel. Any confidential submissions must be accompanied by a non-confidential version to ensure transparency.
For detailed information and updates, interested parties can visit the DGTR website at www.dgtr.gov.in.
