DGTR recommends a 10% safeguard duty on single-mode optical fibre imports

Currently, the majority of single-mode optical fibre imports come from China

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The Directorate General of Trade Remedies (DGTR) on August 24 recommended a 10 percent safeguard duty on single-mode optical fibre imports. This duty would be imposed over a one-year period as it found that there has been a significant surge in imports for the product.

This decision came after Sterlite Technologies and Birla Furukawa Fibre Optics, approached the DGTR and said they were unable to compete with imports and regain their market share.

The DGTR also conducted a probe following an application filed by the firms.

Currently, the majority of single-mode optical fibre imports come from China. In fact, the imports increased from 1,903 FKM in FY 17 to 9,918 FKM in FY19.

The basic customs duty on the product is 15 percent.

“Imports are undercutting the prices of the domestic industry, and is preventing the increase in price, which otherwise would have occurred in the absence of dumped imports. Imports are causing price suppression in the market,” the DGTR said in its findings.

Additionally, in a separate notification, the directorate suggested a provisional anti-dumping duty of $266.37- 275.08 per metric tonne on soda ash imported from the US and Turkey.

While the DGTR is an investigation arm under the commerce and industry ministry, it is finally up to the finance ministry to take a call on imposing the duty.