New Delhi: The government has started an investigation into the alleged circumvention of countervailing duties on saccharin imports from China, following claims that shipments are being routed through Thailand to avoid the duty, PTI reported.
Saccharin is widely used as a low-cost substitute for sugar in several products. The artificial sweeteners can affect demand for sugar in the food and beverage industry.
The probe has been initiated by the Directorate General of Trade Remedies (DGTR) under the Ministry of Commerce and Industry, India after a request from Swati Petro Products and Blue Jet Healthcare.
In their application, the companies alleged that saccharin exported from Thailand is not manufactured there but is of Chinese origin and is being routed through the country to avoid the countervailing duty imposed on Chinese imports.
They also claimed that Thailand does not have genuine manufacturing facilities for saccharin.
The Ministry of Finance, India had imposed countervailing duties on saccharin imported from China on February 25 last year, and those duties are currently in force.
Based on the complaint, the DGTR said it has initiated an anti-circumvention investigation to examine whether the existing duty is being bypassed through imports consigned from Thailand.
If the authority finds evidence of such practices, it may recommend extending the duty to imports from Thailand. The final decision on imposing or extending the duty will be taken by the finance ministry.
Apart from using as an artificial sweetener, Saccharin is widely used across industries, including pharmaceuticals, personal care products, and electroplating.
