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A U.S. trade panel gave preliminary approval on Monday to steep anti-dumping duties on imports of an industrial color additive from China and India that is used in paints, plastics and printing ink.

The U.S. International Trade Commission, by a vote of 6-0, said there was a reasonable indication that low-priced imports of various forms of Carbazole Violet Pigment 23 were harming domestic producers.

The case was brought by Sun Chemical Corp. of Cincinnati, Ohio, and Nation Ford Chemical Co. of Fort Mills, South Carolina. Sun is a wholly-owned subsidiary of Dainippon Ink and Chemical, which is based in Tokyo.

The ubiquitous pigment is also used in coatings, rubber, floor coverings and textiles. Violet 23 is used to redden blue pigments.

The action is the latest in a spate of cases brought by U.S. textile, television, furniture and other manufacturers seeking protection against low-priced Chinese competition.

Sun Chemical and NFC have asked for a 370 percent anti-dumping duty on imports from China and a 148 percent duty on imports from India. They also want additional duties to offset subsidies that they say are provided by the Chinese and Indian governments.

The ITC vote clears the way for the Commerce Department to calculate preliminary anti-dumping and countervailing duties on imports from the two countries. The ITC must make a final injury determination before duties are imposed.

Sun Chemical produces more than half of all the Violet 23 manufactured in the United States.

NFC is the only domestic producer of the crude form of the pigment and supplies all of its production to Sun, according to documents filed by the companies.

Imports of Violet 23 from China more than tripled between 2000 and 2002 to 501,130 pounds (227,300 kg), the companies said. Growth accelerated in 2003 as prices for the Chinese product dropped to US$5.24 per pound from US$8.23 in 2002, they said.

Imports from India fell sharply in the first eight months of 2003 after reaching 61,350 pounds (27,830 kg) in 2002.

Indian prices were $12.38 per pound in 2003, down sharply from $18.53 per pound in 2000, the companies said.

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