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Anti-Dumping Duty on Optical Fiber Imports proposed by DGTR

Anti-Dumping Duty on Optical Fiber Imports proposed by DGTR

The Directorate General of Trade Remedies (DGTR), which is a branch of the commerce ministry, has proposed the implementation of an anti-dumping tax on a specific type of optical fiber imported from China, Korea, and Indonesia to protect the local industry from low-priced foreign shipments.

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Anti-Dumping Duty on Optical Fiber Imports proposed by DGTR: Key Points

  • After investigating the dumped imports of “dispersion unshifted single-mode optical fiber” from these countries, DGTR has suggested the duty.
  • This product is typically utilized for high-data-rate, long-distance, and access network transportation.
  • Birla Furukawa Fibre Optics Pvt. Ltd. had requested an anti-dumping inquiry on this product from these nations on behalf of the local industry, claiming that the dumped imports were causing significant harm to the domestic industry and requested the imposition of duties.
  • DGTR’s investigation discovered that the local industry had suffered significant damage due to the dumped imports.
  • The applicant was required to sell the product at a price lower than its cost of production, resulting in losses and negatively impacting the profitability of the domestic industry, according to a notification issued by DGTR.

Recommendations of DGTR

  • The authority has suggested that definitive anti-dumping duties be implemented to address the harm inflicted on the domestic industry.
  • The recommended duty ranges from $122 per kfkm to $857.23 per kfkm, with the commodity being traded in fkm (fibre kilometres).
  • The DGTR, which is a part of the commerce ministry, provides the recommendation, while the finance ministry makes the final decision to impose the duty within three months of the recommendation.
  • The purpose of anti-dumping probes initiated by countries is to examine whether their domestic industries have been negatively impacted by an increase in imports sold below cost.
  • Duties are imposed within the framework of the World Trade Organization’s multilateral system as a countermeasure.
  • Anti-dumping measures are intended to ensure equitable trade and a level playing field for domestic industries, not to limit imports or unduly raise product costs.

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