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G. Srinivasan

New Delhi , Dec. 26

BARELY after recommending preliminary anti-dumping duty on copper clad laminates imported from China, Taiwan, Hong Kong, South Korea, Singapore, the Philippines and Thailand, the Designated Authority in the Commerce Ministry has recommended its withdrawal in its final findings.

Copper clad laminates (CCL) is a laminate of paper or glass fabric of a kind used to make printed circuit boards. A laminate is a multiple layer of paper or glass fabric which has been joined/fixed together using a resin. A foil of copper is laminated on the top of the sheet to provide current carrying capability to the laminate.

In response to a written petition submitted by Gujarat Perstorp Electronics Ltd, Gandhinagar, on behalf of the domestic industry, the authority imposed preliminary anti-dumping duty in June. The provisional duties already imposed or collected, if any, should be refunded, the authority stated.

In its final findings, the authority observed that while the subject goods have been exported to India below its normal value resulting in dumping as a result of which the domestic industry has suffered material injury during the period of investigation, the affected user industry and other importers furnished detailed evidence to the authority so as to establish that the material injury caused to the domestic industry could not be ascribed to the dumped imports from the subject countries.

Dealing with the causal link between cheap import and consequent material injury to the domestic industry, the user industry observed that the domestic industry has been able to increase its market share when the imports from the subject countries had gone up. This clearly established that there is "no causal link between the alleged dumping of goods and the claimed injury of the domestic industry". Further, it said progress report on the implementation of the scheme under the BIFR to which the domestic industry had been referred to, reveals that the real cause of the alleged injury was the steep reduction in the import duties.

The user industry noted fashion that while it has been mentioned that the petitioner has approached the designated authority for imposition of anti-dumping duties, it is to be stated, "this approach is legally flawed as the injury on account of fall in customs duties cannot be remedied by imposition of anti-dumping duties".

Stating that the purpose of customs duties is quite different from that of anti-dumping duties, the user industry told the authority unequivocally noted that the anti-dumping machinery cannot be resorted to if the Government itself, in its wisdom and exercise of the sovereign powers, decides to lower the general level of protection to the domestic industry.

After preliminary findings, it has been alleged by the various interested parties (user industry), the domestic industry has closed down its operation and is no longer producing any subject goods even after the provisional anti-dumping duty was in operation.

The authority has verified the records on December 11, of domestic industry and found that it has significantly curtailed its operations even after imposition of anti-dumping duties and the number of days of layoff has markedly increased during the last six months.

Finally, the authority was also convinced that non- absorption of developments in technology has been a major factor in the injury to the domestic industry, more than imports from the subject countries.

In view of these findings, the authority has now decided to withdraw the anti-dumping duties recommended provisionally in June on imports of copper laminates from the subject countries.

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