Govt imposes anti-dumping duty on Chinese telecom equipment.

NEW DELHI: India has imposed anti-dumping duty of up to 266 per cent on imports of an IT equipment  also used in the telecom sector to guard the domestic industry from cheap Chinese and Israeli shipments.

The restrictive duty on import of 'Synchronous Digital Hierarchy Transmission Equipment' would range from 3 per cent to 266 per cent on the CIF (Cost, Insurance, Freight) value of imports, the Department of Revenue said.

The move would impact import of the equipment from companies like Alcatel-Lucent Shanghai Bell Co Ltd, ZTE Corporation and Israel-based ECI Telecom Ltd.

"The anti-dumping duty imposed shall be levied for a period of five years (unless revoked, superseded or amended earlier) from the date of imposition of the provisional anti-dumping duty, that is, the 8th December, 2009 for the import from, China and Israel," it said.

The Directorate General of Anti-Dumping and Allied Duties (DGAD), a nodal agency under the Commerce Ministry, had recommended imposition of the duty after an investigation.

Anti-dumping duty is recommended by the commerce ministry, while it is the responsibility of the finance ministry to impose the same.

The DGAD had concluded in its probe that the domestic industry had suffered a material injury on account of dumped imports of the equipment from the two nations.

Unlike safeguard duties, which are levied in a uniform way, anti-dumping duties vary from product-to-product and from country-to-country.

Countries initiate anti-dumping probes to check if their domestic industries have been hurt because of a surge in cheap imports.

As a counter-measure, they impose duties within the multilateral regime of the WTO. Anti-dumping measures are taken to ensure fair trade and provide a level playing field to domestic players. It is not a measure to restrict imports or cause an unjustified increase in the cost of products.

Source : economictimes.indiatimes.com