In a major setback to Bangladesh's textile chemical exports to Pakistan, National Tariff Commission (NTC) of Pakistan is planning to impose anti-dumping duty on import of hydrogen peroxide from Bangladesh. The NTC has already issued a notice of initiation and invited the interested parties to attend hearing on the issue. Dumping occurs when a company exports a product to any country at prices lower than the normal value (the domestic price or the cost of production) of the product on its domestic market.
On behalf of the Bangladesh government and exporters, Bangladesh Tariff Commission (BTC) will become parties in the hearing and fight against the allegation of dumping the product as the allegation is not true, say commerce ministry of Bangladesh.
As per World Trade Organisation, the importing country can impose anti-dumping duty on import of the product if it finds proof on investigation that dumping has occurred, such dumping has caused or is causing material injury to the domestic industry and there is a causal link between the dumping and the injury found. Anti-dumping duty cannot be imposed if the conditions are not met.
Hydrogen peroxide is used in bleaching and sterilising process in textile and paper and pulp industry. It is also used in bleaching, oxidizing, detoxifying and deodorising purposes. Pakistan is the second largest importer of the product from Bangladesh importing $1.2 million worth. Bangladesh in July-April of the current fiscal year 2014-15 exported the product worth $6.5 million in different countries including Pakistan, India, Malaysia, Sri Lanka and Nepal.
