India Opens Investigation Into China’s Alleged LNG Fuel Tank Dumping

India has initiated an investigation into the alleged dumping of LNG fuel tanks from China after a complaint was lodged by a domestic company, Inox India Ltd.

According to a notification from the commerce ministry, the Directorate General of Trade Remedies (DGTR) is probing the issue following claims that cheap imports are negatively impacting the domestic industry’s margins.

Inox India Ltd has requested the imposition of an anti-dumping duty, arguing that the low-cost imports are causing significant harm to domestic producers. These LNG fuel tanks are used to store and transport methane gas in vehicles like trucks.

The DGTR’s notification stated, “On the basis of the duly substantiated written application submitted by the domestic industry and having reached satisfaction based on the prima facie evidence submitted by domestic industry about dumping of subject goods…the Authority hereby initiates an anti-dumping investigation.”

If the investigation confirms that these imports have caused material injury to the domestic sector, the DGTR will recommend the imposition of anti-dumping duties. The final decision will be made by the finance ministry.

Anti-dumping investigations are conducted by countries to determine if a surge in cheap imports has harmed local industries. If proven, anti-dumping duties are levied in line with the World Trade Organization’s (WTO) multilateral trade regulations to ensure fair competition between domestic and foreign producers.

In the past, India has imposed anti-dumping duties on several products to curb cheap imports from countries including China. The imports of LNG fuel tanks amounted to USD 93.6 million in 2023-24, compared to USD 42.7 million during April-October of the current fiscal year and USD 84.7 million in 2022-23.