Why is it in the News?

The Directorate General of Trade Remedies (DGTR) has now recommended the imposition of anti-dumping duty on sodium cyanide (NaCN) imported from China, the European Union, Japan, and Korea.

Key Facts About Sodium Cyanide:

• Sodium cyanide (NaCN) is a highly toxic, inorganic compound with a white, crystalline appearance.
• It is a solid at room temperature and has a high affinity for metals, making it useful in various industrial processes.
• Due to its toxic nature, proper handling and safety protocols must be followed when working with sodium cyanide.

Applications of Sodium Cyanide:

• Mining and Metallurgy: Sodium cyanide is widely used in the extraction of gold and silver from ores. It is employed in a technique called "cyanide heap leaching," where a dilute sodium cyanide solution is sprayed onto crushed ore.
  • The cyanide forms a water-soluble complex with the precious metals, enabling their recovery from the ore.
• Electroplating: NaCN is utilized as an electrolyte in electroplating processes, particularly for the deposition of silver, gold, and other metals on various surfaces to improve their appearance, durability, or conductivity.
• Synthetic Fiber Production: Sodium cyanide is used in the manufacturing of synthetic fibers such as acrylic and nylon.
  • It serves as a catalyst in the polymerization process, promoting the formation of long-chain polymers that make up the fibers.
• Pesticides: Due to its toxicity, sodium cyanide has been used as a fumigant to control pests and rodents.
  • However, its use in this field has been largely phased out in many countries due to safety concerns and the development of safer alternatives.
• Dye and Pigment Production: NaCN can be used in the production of certain dyes and pigments, particularly those containing nitrogen.
  • It acts as a precursor for the synthesis of these compounds.

What is Anti-Dumping Duty?

• An anti-dumping duty is a tariff imposed by a domestic government on foreign imports suspected of being sold at prices lower than those in the exporter's domestic market.
• This measure aims to prevent these products from undercutting local businesses and harming the local economy.
• The World Trade Organization (WTO) oversees a framework of international trade rules governing anti-dumping measures.
• Under this agreement, governments are permitted to address dumping practices if they pose a threat of significant harm to a domestic industry.

Calculation of Anti-Dumping Duty:

• The calculation of anti-dumping duty involves determining the difference between the normal value and the export value of the product.
• The normal value represents the market value of the product in the exporter's domestic market, while the export value denotes the price at which the product is sold when exported to India.
• The anti-dumping duty is levied to neutralize this price disparity and safeguard the domestic industry from the adverse effects of inexpensive imports.

Anti-Dumping Mechanism in India:

• India's anti-dumping mechanism is overseen by the Directorate General of Anti-Dumping and Allied Duties (DGAD) under the Ministry of Finance.
• The legal framework for anti-dumping in India is established by the Customs Tariff Act of 1975 and the Customs Tariff Rules of 1995.
• The DGAD conducts investigations to assess whether a surge in below-cost imports has negatively impacted the domestic industry.