Following a complaint from a domestic player, India has initiated an anti-dumping investigation into imports of a certain type of optical fibre from China, Indonesia, and South Korea. The duty is intended to protect the domestic industry from unnecessary imports.
The Commerce Ministry''s investigation arm Directorate General of Trade Remedies is looking into the alleged dumping of ''Dispersion Unshifted Single-mode Optical Fibre'' originated in or exported from these three countries.
The product is used to construct different kinds of cables, including optical fibre, tight buffer cables, armoured and unarmoured cables.
Single-mode optical fibre is primarily applied to high-data-rate, long-distance and access network transportation.
Birla Furukawa Fibre Opticshas filed an application for the start of an anti-dumping investigation in the country''s stock market.
The DGTR in a notification has stated that the applicant has claimed that significant damage was incurred to the domestic industry by the dumped imports from these countries.
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"The authority hereby initiates an investigation on the basis of the domestic industry''s debunked written application, and having satisfied himself."
If evidence is found that the dumping has caused significant damage to the domestic players, the DGTR would recommend the imposition of a anti-dumping tax on these imports. The finance ministry has taken the final decision to impose these duties.
Countries are conducting anti-dumping investigations to see if their domestic industries have been affected by a surge of cheap imports.
These duties are imposed under the multilateral arrangement of the Geneva-based World Trade Organization (WTO). The duty is aimed at ensuring fair trading practices and creating a level-playing field for domestic producers, vis-a-vis foreign producers and exporters.
India has already imposed anti-dumping taxes on several goods in order to combat cheap imports from several countries, including China.