EU Plans Anti-dumping Duty on Indian Optical Fibre Cable Producers

The European Commission (EC) decided last week to propose provisional duty on up to ten firms, excluding HFCL, which was found to be following fair business practices, after a six-month investigation that included being physically present at these companies' factories.

Sterlite Innovations (STL) and its subsidiary Sterlite Tech Cables Solutions could confront the most noteworthy levy of 11.4%, trailed by Birla Cables, Universal Cables and Vindhya Telelinks at duty of 8.7%. However, according to a notification from the European Commission dated June 14, other associated businesses, such as ZTT India, UM Cables, Aksh Optifibre, Apar Industries, Polycab India, and Aberdare Technologies, could be subject to a penalty of 9.9%. A ultimate conclusion to impose will rely upon industry conference and lawful procedures over the course of next six months, executives expect.

According to a STL spokesperson, the firm is cooperating constructively with EU authorities and, "It is important to clarify that this is an initial step of the process which will be followed by thorough consultation and review process."

"With our Optical Fibre Cable and Optical Connectivity manufacturing in Italy, we have been a trusted partner in the European region for over two decades, working hand in hand with the local service providers to further their country’s fiberisation ambitions," the person said.

“Dumping is established in two scenarios, one, when any producer is selling the exports below its cost of production or second, if it is selling at a price lower than the home country,” said Mahendra Nahata, managing director at HFCL. “Both scenarios are detrimental trade practices and after a six-month long investigation, HFCL is the only producer which was found to be transparent in following fair business practices.”