Anti-Dumping Duty on Chinese Aluminium Foils

• 31 Aug 2024

On 30th August, 2024, India's Directorate General of Trade Remedies (DGTR) recommended an anti-dumping duty on aluminium foil imports from China after determining that these imports captured 30% of the Indian market, harming domestic producers.

• The investigation followed a request from Hindalco, one of India’s largest aluminium manufacturers, alongside other companies, citing injury to domestic industries due to cheap Chinese imports.
• Anti-dumping investigations assess whether domestic industries are harmed by low-cost imports, with the Ministry of Finance making the final decision on imposing duties.
• The DGTR found that Chinese aluminium foil imports are undercutting domestic prices, forcing Indian producers to sell below production costs.
• The aluminium foil in question, up to 80 microns thick and used for packaging edible products, is recommended for duties ranging between $619 to $873 per tonne.
• During the investigation period, the combined production and capacity of the petitioning domestic producers accounted for about 54% of total production and 45% of capacity in India.
• Some industry stakeholders warned that imposing duties could lead to monopolistic practices, negatively impacting downstream producers and increasing the cost of finished goods.