India protecting domestic cosmetics market with anti-dumping duty on Chinese chemical
The Indian government is debating whether to extend its anti-dumping tax on an imported chemical from China, coumarin, to protect the domestic market.
Coumarin is used in the production of soaps and makeup, and in adding the levy to its import, the Indian government hopes to avoid an influx of the chemical at cheap rates, and maintain fair trade in the country.
An anti-dumping duty on coumarin has been in force in India for the past five years, since August 2010, and in recent months, the government has been reviewing its success and efficacy, according the Economic Times of India.
As a result of the review, the Directorate General of Anti-dumping and Allied Duties (DGAD) has “recommended that "continued imposition" of the anti-dumping duty is required to offset the likelihood of dumping and injury to the domestic industry,” the Times reports.
What is coumarin?
According to the Mintel ingredients database, coumarin is found in thousands of cosmetics and personal care products, and is particularly prevalent in certain perfumes.
“It imparts strength to a perfume, as well as a characteristic note,” beauty brand Lush explains on its website. “It has a very sweet, vanilla-like aroma, which is often described as similar to new-mown hay.
“It is a chemical compound, and occurs naturally in some essential oils and absolutes, such as cinnamon, lavender, tonka, lemongrass, rose, tagetes and tarragon.”
The recommended continuation of the tax in India is in part due to the fact that, despite the anti-dumping duty, the DGAD found that between April 2013 and September 2014, Chinese coumarin was still being imported into India at below market-value.
The DGAD recommends that the duty now continues at a rate of $14.02 per kg, applicable to all imports of the chemical from China; it is now up to the finance ministry to review and decide whether to take on the recommendation.
"The authority recommends continuation of definitive anti-dumping duty on all imports," the DGAD confirmed in a statement. Its review came in response to a request from Amis Impex Pvt Ltd.