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Govt initiates safeguard probe in SMOF imports
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SME Times News Bureau | 14 Nov, 2019
The Directorate General of Trade
Remedies under the Commerce Ministry has initiated a safeguard
investigation concerning imports of "Single Mode Optical Fibre" into
India.
The investigation was initiated following complaint by
Sterlite Technologies Limited (STL) and Birla Furukawa Fibre Optics
Private Limited (BFL) alleging increased imports of "Single Mode Optical
Fibre" (SMOF) causing serious injury and threat of serious injury to
the domestic industry.
The applicants have requested for
immediate imposition of provisional safeguard duty in view of
significant surge in imports of the SMOF.
After examining the
application filed by applicants, the Director General, prima facie,
found that there has been a significant increase in imports of subject
goods during 2018-19 and the most recent period, and such increase
appears to be a result of unforeseen developments such as global
oversupply, anti-dumping duty imposed by China against major optical
fibre producing countries and other restrictions imposed on sale of
China-made optical fibre, and that the volume and prices of these
imports have caused and/or are threatening to cause significant injury
to domestic industry.
After determining that there is sufficient
evidence to justify initiation of safeguard investigation, the Director
General initiated an investigation pursuant to rule 5 of the Safeguard
rules, 1997 in order to determine whether as a result of unforeseen
developments, the imports of the product under consideration constitute
increased imports, and whether the increased imports have caused and/or
are threatening to cause serious injury to the domestic industry of like
and/or directly competing products.
The period of investigation
(POI) considered for the purposes of present investigation is from
2016-17 to June 2019. The applicants have submitted that there has been a
sudden, sharp and significant surge in imports in 2018-19, which has
continued thereafter as well. The Authority has taken six months period
(i.e. January 2019 - June 2019) as the most recent period.
The
petitioners have claimed that there is a sudden, sharp and significant
increase in imports in 2018-19 both in absolute terms as well as related
to domestic industry production. It is noted that the imports in
2018-19 have more than tripled from 2016-17 and 2017-18 levels and have
continued to be at increased levels during the most recent period, i.e.
January to June 2019.
The petitioners have claimed that there is a
confluence of a number of developments such as global over-capacity in
fibre industry, imposition of anti-dumping duty by China against most of
the optical fibre manufacturing countries, and other fiscal/non-fiscal
restrictions imposed on sale/use of China-made Optical Fibre, which has
resulted in sudden diversion of imports to India.
The applicants
have claimed that the increased imports of the product has caused and is
threatening to cause serious injury to the domestic producers. They
have also claimed that their sales to independent customers has
substantially gone down.
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