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EU may impose aroma-chemical tariffs on India to aid Spain

The European Union threatened to impose tariffs on a chemical from India used in perfumes and soaps after Spanish producers complained about cheaper imports.

The EU opened an inquiry into whether Indian dihydromyrcenol exporters are selling in Europe below domestic prices or below the production cost, a practice known as „dumping.” The 25-nation bloc also started a probe into whether Indian exporters of the product receive aid. The investigations will determine whether dumping and subsidies exist and whether they have „caused injury,” the European Commission, the EU's executive arm in Brussels, said in the Official Journal on November 11. The probes stem from September 29 complaints by Destilaciones Bordas Chinchurreta SA and Sensient Fragrances SA, two Spanish producers that represent more than a quarter of EU dihydromyrcenol production, the commission said. Sensient Fragrances is a unit of Sensient Technologies Corp. of the US under EU procedures, the commission can impose provisional anti-dumping duties for six months and the bloc's national governments can turn those measures into „definitive” five-year levies. The commission can also impose four-month anti-subsidy, or „countervailing”, duties, which governments can turn into definitive measures. The commission gives interested parties 40 days from the opening of dumping and subsidy investigations to make their views known and has as long as nine months to decide on provisional duties. (Bloomberg)