Government initiates anti-dumping investigation on imports of transparent float glass from Malaysia
New Delhi, September 2 () The government initiated an investigation into an alleged spill of transparent float glass, used in automobiles and refrigeration industries, from Malaysia following a complaint from national players.
The investigation is being carried out by the General Directorate of Commercial Remedies (DGTR) of the arm of the Ministry of Commerce.
In a notification, management has said it has found sufficient evidence of glass dumping from Malaysia and its impact on the national industry.
The authority hereby initiates an investigation into the alleged dumping and the consequent damage to the national industry, he said.
In the investigation, it would determine the existence and effect of the alleged dumping and recommend the amount of the anti-dumping duty, which if applied, would be adequate to eliminate the damage to the domestic industry.
While DGTR recommends duty, the finance ministry will make the final decision to impose the same.
The anti-dumping tax, if imposed, would help protect national actors in the sector against cheap imports of the product.
The investigation period is 2018-19. However, management would also examine the 2015-18 data to understand the impact of imports.
Saint-Gobain India, Sisecam Flat Glass India, Gold Plus Glass Industries Ltd and Asahi India Glass had filed a joint application with the DGTR to initiate an anti-dumping investigation.
Glass has important uses in the construction, refrigeration, mirrors and automobiles industries. It is a superior quality of glass.
Malaysia is a key trading partner of India in the Southeast Asian region. Bilateral trade between countries increased to USD 17.25 billion in 2018-19 from USD 14.71 billion in 2017-18.
In the language of international trade, dumping occurs when a country or a company exports an item at a price lower than the price of that product in its domestic market.
Dumping affects the price of that product in the exporting country, affecting the margins and profits of manufacturing companies.
In accordance with world trade standards, a country may impose tariffs on such dumped products to provide equal conditions to domestic manufacturers. The duty is imposed only after a thorough investigation by a quasi-judicial body, such as DGTR, in India.
In its investigation, management has to conclude whether the dumped products are affecting national industries.
The imposition of anti-dumping duties is allowed under the regime of the World Trade Organization (WTO). The duty is aimed at ensuring fair business practices and creating a level playing field for domestic producers versus foreign producers and exporters. RR HRS