In another blow to Indian pipes industry post safeguard duty, EU imposes anti-dumping duty on ductile cast iron pipes in order to punish Indian pipe exporters.
In a recent move to protect its domestic pipe industry from cheap Indian imports, European Union (EU) has imposed provisional anti dumping duty up to 31.2% on water and sewage pipes from India. This duty is applicable for a period of six months.
Anti-dumping duty is imposed in case a product is exported at a price below the price charged in home country. The anti-dumping duty levied by EU is a move against the ductile cast iron pipes exporters who were allegedly selling their products at dumped prices.
While duty of 15.3% is already levied upon shipments of Electorsteel Ltd, new anti-dumping tariff of 31.2% duty is applicable on shipments of Jindal Saw Ltd and other companies.
The probe was initiated by European Commission in Dec’14 following the dumping complaint from Saint-Gobain PAM group, on behalf of producers that account for more than 25% of the EU’s output of ductile cast iron pipes. The provisional duty, which is imposed for six months, might extend to a prolonged period of five years.
As per the data submitted in the petition, Indian imports increased by 22% during Oct’13 to Sept’14, which compelled the Commission to start the investigation.
A Setback to Indian Pipe Industry
There is already anticipation of increased imports of pipes/tubes post safeguard duty announcement. This is because these products are exempted from safeguard duty.
Now domestic pipe manufacturers will not only have to compete with cheaper Chinese imports, but their exports will also get restricted owing to anti-dumping duty.
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