India probes alleged dumping of flat rolled copper products from China, 5 other Asian countries

India has initiated a probe into an alleged dumping of copper alloy flat rolled products -- used by auto and electrical industries -- from China, Korea, Malaysia, Nepal, Sri Lanka and Thailand, following a complaint.

A domestic manufacturer Agrawal Metal Works Pvt Ltd filed an application before the commerce ministry's probing arm DGTR for anti-dumping investigation on imports of "copper and copper alloy flat products" imported from these six countries.

The applicant has alleged dumping of the goods from these countries and requested for imposition of the anti-dumping duties on the imports.

The Directorate General of Trade Remedies (DGTR) in a notification has said that on the basis of prima facie evidence submitted by the applicant,"the authority, hereby, initiates an investigation".

In the probe, the directorate would determine the existence, degree and effect of any alleged dumping in respect of the product under consideration from the six nations.

If it would found that there is a dumping and it is impacting the domestic manufacturer, it would recommend the amount of anti-dumping duty, which if levied, would be adequate to remove the injury to the domestic industry.

While the DGTR recommends the duty, the finance ministry imposes the same.

The period of investigation is from January- December 2019 (12 months). It would also look into the data ofApril 2016-19 period.

The product under consideration is flat rolled products of copper, such as copper sheets, copper plates, copper strips, and copper foils.

These products are used in power distribution, electrical and electronic switchgears and devices, automobile terminal connector and automotive electronics, sanitary fittings, radiators and heat exchangers and key and locks, buttons and zippers.

In international trade parlance, dumping happens when a country or a firm exports an item at a price lower than the price of that product in its domestic market.

Dumping impacts price of that product in the importing country, hitting margins and profits of manufacturing firms.

According to global trade norms, a country is allowed to impose tariffs on such dumped products to provide a level-playing field to domestic manufacturers. The duty is imposed only after a thorough investigation by a quasi-judicial body, such as DGTR, in India.

In its probe, the directorate has to conclude whether the imported products are impacting domestic industries.

Imposition of anti-dumping duty is permissible under the World Trade Organization (WTO) regime. These countries are members of this Geneva-based organisation, which deals global trade norms.

The duty is aimed at ensuring fair trading practices and creating a level-playing field for domestic producers vis-a-vis foreign producers and exporters.