India Starts Another Anti-Dumping Probe

by Mary Swire, Tax-News.com, Hong Kong

04 May 2009

On April 21 protectionist India initiated another anti-dumping investigation to defend its uncompetitive local industry from cheap imports - this time IT equipment (SDH Transmission Equipment) from China and Israel. Of the total 120 new anti-dumping investigations initiated worldwide in the second-half of 2008, India accounted for 42 cases, according to a WTO report.

The probe originated from an application by Tejas Networks Ltd of Bangalore, a major domestic producer of this equipment, which was followed up by the Directorate General of Anti-dumping and Allied Duties (DGAD), part of the Commerce Department. The period under scrutiny is April-December 2008.

According to a report in the Economic Times, The Committee of Secretaries (CoS), headed by the cabinet secretary, has already decided that import restrictions should be imposed sparingly. Earlier this year, it asked the Commerce Department to arrange for proposed import curbs to be vetted by the CoS. However even after India joined with the G20 recently in an undertaking to guard against protectionist measures, there is no evidence of a slowdown in India's anti-dumping vigilance - allowed by WTO within certain parameters.

India has also imposed anti-dumping duty on other imports which include yarn, fabrics, some stainless steel products, and chemicals. Furthermore just last month ceramics and nylon tyre fibre were added to the list of special duties being imposed or extended.

Recommended