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DGTR initiates sunset review investigation on imports of methyl acetoacetate from China
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Shardul Nautiyal, Mumbai
July 12 , 2025
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The Directorate General of Trade Remedies (DGTR), under the ministry of commerce and industry, Government of India, has initiated sunset review investigation concerning the anti-dumping duty on methyl acetoacetate (MAA) imported from China. This follows an application submitted by Laxmi Organic Industries Limited, a domestic producer, requesting a review to ensure continued protection against unfair trade practices.
The review is being conducted under the provisions of the Customs Tariff Act, 1975, and the associated Anti-Dumping Rules, 1995. According to Section 9A(5) of the Act, any anti-dumping duty imposed is set to expire after five years unless a sunset review determines that such expiry would likely lead to the recurrence of dumping and injury to the domestic industry.
Methyl acetoacetate is a key chemical intermediate extensively used in the pharmaceutical sector for synthesizing various drugs and intermediates.
The original investigation into dumping of MAA from China PR and the USA was initiated in January 2015, culminating in a recommendation for anti-dumping duty in April 2016. The ministry of finance imposed definitive duties through a Notification on 31 May 2016.
The first sunset review was initiated on 03 May 2021. It concluded that dumping from China was ongoing and that ending the duties would result in further injury to the domestic industry. Consequently, the anti-dumping duty was extended for another five years through a Notification dated 29 May 2021, effective until 28 May 2026.
The present sunset review has been prompted by the imminent expiry of the current anti-dumping duty. Laxmi Organic Industries Limited has asserted that dumping continues, with no significant market changes since the previous review. They argue that the continued imposition of anti-dumping duties is essential to prevent injury to the domestic industry.
The DGTR has therefore decided to initiate the sunset review investigation to determine whether the withdrawal of the current anti-dumping duties would likely lead to the recurrence of dumping and subsequent harm to domestic producers.
The initiation of this review marks a critical step in safeguarding the interests of Indian manufacturers of methyl acetoacetate. The outcome will determine whether the existing anti-dumping duties on imports from China should continue beyond May 2026, ensuring fair trade and a level playing field for the domestic industry.
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