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India’s Supreme Court has terminated an investigation into the import of butanol from Saudi Arabia into the country.

The court ruled that any levy of anti-dumping duty can only be applied for a limited period, following an investigation into imports from the kingdom dating back to 2016.

The compliant was launched by an Indian chemical manufacturing company, which sought the imposition of anti-dumping duty, claiming that it caused an injury to the domestic industry.

The application further claimed that butanol dumping took place from Malaysia, Singapore, South Africa, the US and the European Union.

Following a thorough investigation, the judge ruled that the period of three months of exports was insufficient to evaluate injury to the domestic market.

Secondly, it cited the short period of production, especially commercial production of just one month to have posed as a constraint to determine a realistic normal value for cooperating producers and exporters.

Thirdly, the court said that the causal link between imports from Saudi Arabia and an injury to the domestic industry could not be conclusively established on the basis of three months of export period.

The authority did not consider it appropriate to recommend a levy of anti-dumping duty on Saudi Arabia and terminated the investigation under Rule 14(b) of Anti-Dumping Rules.

Source: TaxScan