India starts anti-subsidy probe into increased import of copper wire rods from 4 nations

By: | Published: September 17, 2018 5:15 PM

India has initiated an anti-subsidy probe into increased imports of select copper wire rods from Indonesia, Malaysia, Thailand and Vietnam following complaints by domestic players including Hindalco Industries and Vedanta Industries.

Directorate General of Trade Remedies, latest news, Hindalco Industries, Vedanta Industries, Sterlite CopperThe petitioners have alleged that the producers/exporters of the goods in these countries have benefitted from the “actionable subsidies” provided at various levels by the governments of these countries, including their different provinces and municipalities. (Reuters)

India has initiated an anti-subsidy probe into increased imports of select copper wire rods from Indonesia, Malaysia, Thailand and Vietnam following complaints by domestic players including Hindalco Industries and Vedanta Industries. The commerce ministry’s investigating arm Directorate General of Trade Remedies (DGTR) in a notification stated that there is “prima facie evidence” of existence of subsidies on production and exports of ‘continuous cast copper wire rods’ in these four countries.

Such subsidized imports into India are causing material injury to the domestic industry through their volume and price effects, it said.

“The authority hereby initiates an investigation into the alleged subsidisation and consequent material injury and threat of injury to the domestic industry,” it has said. In the probe, the directorate will determine the existence, degree and effect of alleged subsidisation and to recommend the amount of countervailing or anti-subsidy duty, which if levied, would be adequate to remove the injury to the domestic industry.

Hindalco Industries and Vedanta Industries (Sterlite Copper) had filed an application on behalf of domestic industry before the DGTR alleging subsidisation of the products from these four nations and requested for initiation of an anti-subsidy investigation.

The petitioners have alleged that the producers/exporters of the goods in these countries have benefitted from the “actionable subsidies” provided at various levels by the governments of these countries, including their different provinces and municipalities.

The period of investigation is 2017-18 (12 months). It would also cover the data of 2014-17. Countervailing duty is a country-specific duty which is imposed to safeguard domestic industry against unfair trade subsidies provided by the local governments of the exporting nations. India has already imposed a countervailing duty as well as anti-dumping duties on various kinds of steel from China to protect domestic players, which are facing problems.

Get live Stock Prices from BSE and NSE and latest NAV, portfolio of Mutual Funds, calculate your tax by Income Tax Calculator, know market’s Top Gainers, Top Losers & Best Equity Funds. Like us on Facebook and follow us on Twitter.

Switch to Hindi Edition