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Govt may impose 25% provisional safeguard duty on imports of single-mode optical fibre
Nov-08-2019

The government may impose 25 percent provisional safeguard duty on imports of single-mode optical fibre from all countries. This follows a Commerce Ministry investigation initiated by the Directorate General of Trade Remedies (DGTR) in September after domestic industry complained. It found a sudden and significant surge in the imports of the fibre. However, certain developing countries would be exempted from this decision. The single-mode optical fibre is used for signal transmission with certain bands and for manufacturing optical fibre cable.

DGTR said the preliminary findings concluded that the product is being imported in increased quantities and may cause a serious damage to the domestic industry. It also said existing critical circumstances justify the immediate imposition of a provisional safeguard duty in order to save the domestic industry manufacturing like or directly competitive products.

The application for the DGTR investigation was made by Sterlite Technologies and Birla Furukawa Fibre Optics. The applicants had claimed that their profitability has considerably declined during this period and they are running in losses. They have also claimed that because the imports are coming at low prices, their companies were forced to reduce their prices, which has resulted in significant price depression.

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