Bombay Metal Exchange (BME) has given a representation to the Directorate General of Trade Remedies (DGTR) stating that there is a steep decline in production due to jump in imports of these products from Malaysia, Thailand and Vietnam because of "significant subsidies/benefits" that are available to the producers in these countries, according to a notification.
India has initiated a probe into an alleged increase in subsidised imports of copper tubes and pipes, used air conditioning and refrigeration systems, from Malaysia, Thailand, Vietnam following a complaint by domestic manufacturers.
Bombay Metal Exchange (BME) has given a representation to the Directorate General of Trade Remedies (DGTR) stating that there is a steep decline in production due to jump in imports of these products from Malaysia, Thailand and Vietnam because of “significant subsidies/benefits” that are available to the producers in these countries, according to a notification.
BME is the apex body of non-ferrous metal trade and industry in India representing about 50 manufacturers of copper tubes and pipes. The DGTR notification stated that the directorate has also received the import data from customs for the past four years which indicate increased imports mainly from Malaysia, Thailand and Vietnam.
These countries collectively account for more than 90 per cent of total imports of these goods.
The “authority hereby initiates the countervailing duty investigation,” it said. In the probe, the directorate would determine the existence, degree and effect of alleged subsidisation and recommend the amount of countervailing or anti-subsidy duty, which if levied, would be adequate to remove the injury to the domestic industry.
The period of investigation is April 2019-March 2020. It would also cover the data of 2016-19. Copper tubes and pipes are largely used in air-conditioning and refrigeration systems. About 80- 90 per cent of the consumption of the product is in air-conditioning and refrigeration systems applications.
Countervailing duty is a country-specific duty imposed to safeguard domestic industry against unfair trade subsidies provided by the local governments of the exporting nations. India has already imposed countervailing duty as well as anti-dumping duties on various kinds of products from different countries to protect domestic players, which are facing problems.
In separate notifications, the DGTR stated that it has started an alleged dumping probe into imports of ‘Perusulphates’, used in the textiles and chemicals sector, from China and the US following complaints by domestic industries.
Besides, similar investigations have started on imports of hydrofluorocarbons (HFC) components R-32, used in residential air-conditioning systems, and silicone sealants, used in manufacturing solar photovoltaic modules and thermal power applications, from China.