The Directorate-General of Anti-dumping and Allied Duties (DGAD) has imposed definitive anti dumping duty on all imports of Chloroquine Phosphate originating in/or exported from China. The decision confirms the preliminary findings of DGAD which stated that chloroquine phosphate in all forms originating in or exported from China PR are being exported to India below its normal value. The final decision has come eight months after the preliminary findings.

Chloroquine Phosphate is used for treating malaria and symptoms like malaria. China PR and India are two major producers of Chloroquine phosphate but it is not consumed much in China PR as Chinese subcontinent is not affected with Malaria. The Authority has noted that due to the production base and limited consumption in China PR, the producers/exporters from China PR have no other option but to cater international market.

The DGAD inquiry had revealed that prior to the imposition of anti-dumping duty, the Chinese imports of the bulk drug had increased in absolute terms. "Imports are significantly undercutting the selling price of domestic industry, the profitability of the domestic industry has been severely eroded resulting into financial loss and the imports were having significant depressing effect on the price of the domestic market as the domestic industry is not able to raise its selling price in view of the dumped imports," the DGAD observed.

The chloroquine phosphate formulations are procured by the Central Government for its National Anti Malaria Programme.

One of the constituents of domestic industry consumes the product under consideration captively for producing Chloroquine Phosphate tablets apart from sales as bulk drug. However imports of the product under consideration are also made for producing Chloroquine Phosphate tablets. The product imported from China PR is converted into tablets by the formulators which compete with the domestic industry. Hence The Authority felt that dumped imports from China affect the domestic industry not only in merchant market as bulk drug but also in its captive market.

The anti dumping duty is the difference between the price of the drug and the landed value of imports/Kg.