Govt might impose 25% safeguard duty on imports of single-mode optical fibre
DGTR, the ministry's investigation arm, initiated the probe in September. The single-mode glass fibre is employed for signal transmission with sure bands and for producing glass fibre cable
The government would possibly impose a conditional safeguard duty of 25% on imports of single-mode glass fibre, used for signal transmission, based on a Commerce Ministry investigation that found a sudden and important surge within the imports of the fibre.
The Directorate General of Trade Remedies (DGTR), the ministry's investigation arm, initiated the probe in September following a complaint from the domestic industry.
The preliminary findings complete that the merchandise is being foreign in accrued quantities and will cause a heavy harm to the domestic trade, DGTR said.
"Existing vital circumstances justify the immediate imposition of a conditional safeguard duty so as to avoid wasting the domestic trade producing like or directly competitive product," it said.
Considering the necessary circumstances so the extent of nice injury, unfinished final determination of rate of safeguard duty, a tentative safeguard duty of twenty five per cent is planned to be imposed on the imports of single mode glass fibre...from all countries, " according to a notification of the DGTR. However, sure developing countries would be exempted from this call, it said.
The finance ministry can take the ultimate call to impose the duty.
Safeguard duty may be a trade remedy offered to World Trade Organization member-countries. It is obligatory to supply a level-playing field to domestic players just in case of sudden and important increase in imports of a product.
The application for the DGTR investigation was created by Sterlite Technologies and Birla Furukawa Fibre Optics.
The candidates had claimed that their gain has significantly declined throughout this era and that they square measure running in losses. They have conjointly claimed that as a result of the imports square measure returning at low costs, their companies were forced to reduce their prices, which has resulted in significant price depression.
The single-mode glass fibre is employed for signal transmission with sure bands and for producing glass fibre cable.