Anti-Dumping Duty on Imported Optical Fiber from China, Korea, Indonesia
Tags: Economy/Finance National News
DGTR, an arm of the Ministry of Commerce, has recommended imposition of anti-dumping duty on imports of a certain type of optical fiber from China, Korea and Indonesia to protect the domestic industry from cheap inbound shipments.
An overview of the news
The Directorate General of Trade Remedies (DGTR) has recommended the duty after examination on dumped imports of 'Dispersion Unshifted Single-Mode Optical Fiber' from these countries.
The product is mainly applied to high-data rate, long distance and access network transportation.
Birla Furukawa Fiber Optics Pvt Ltd had asked on behalf of the domestic industry to initiate an anti-dumping investigation on this product.
Why was it recommended to impose an anti-dumping duty?
The DGTR in its findings found that the domestic industry has suffered material injury due to the dumped imports.
DGTR said in a notification that the presence of dumped imports in the Indian market has forced the applicant to sell the product at prices below the cost of sales, causing losses and adversely affecting the profitability standards of the domestic industry.
Therefore, the authority has recommended imposition of anti-dumping duty to protect the domestic industry from injury.
What is Dumping?
According to the World Trade Organisation (WTO), if a company exports a product at a price lower than the price it normally charges on its own home market, it is said to be “dumping” the product.
This is done by companies to grab market share in other countries from the local companies.
What is Anti- Dumping?
Anti-dumping duties are taxes imposed on imported goods to compensate for the difference between their export price and their normal value.
It is imposed to protect producers of competing products in the importing country from harm.
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