The Directorate General of Trade Remedies (DGTR) in India has initiated investigation concerning alleged evasion of countervailing duty imposed on imports of saccharin from China, after complaints that the artificial sweetener originating from China is being exported via Thailand.
Saccharin is used in food and beverages, table-top sweeteners and pharmaceuticals among others.
In 2019, DGTR had recommended countervailing duty of 20% on imports of saccharin from China which will remain effective until July 2024. Countervailing duty applies to goods that have benefited from government subsidies in the country of origin, resulting in substantially lower-than-normal prices.
Swati Petro Products, a major domestic saccharin producer, has claimed that there is no known producer of saccharin in Thailand. Swati spokesperson said, “Exports of saccharin consigned from Thailand to India are substantially manufactured in China claiming the same as goods originating in Thailand.”
Indeed, latest available official trade data showed that during the April-January period of 2021-22, while import of saccharin from China declined 31.5% to US$2.2 million, the import of the artificial sweetener from Thailand shot up by a whopping 8,500% to US$1.4 million.
DGTR has asked relevant stakeholders for further information and after completion of the investigation within a period of one year, DGTR needs to submit its recommendation to the finance ministry, which will take further action on the matter.
According to the WTO, during the 2015-20 period, India initiated 20 countervailing investigations, and 11 measures were in place. As in the case of anti-dumping duties, most of the measures applied to imports originating in China.
