The Hindu Business Line : Dumping probe into SDH transmission equipment from China, Israel

New Delhi, April 25 The Commerce Ministry has commenced a probe into considering and recommending imposition of preliminary anti-dumping duty on imported Synchronous Digital Hierarchy (SDH) Transmission equipment from China and Israel.

The product under probe is SDH transmission equipment, its accessories, associated software and its essential parts and components, in assembled, CKD and SKD form or fitted with eventual broadband/cellular equipment. They are also known as multiplexers, add drop multiplexers (ADM), multiple add drop multiplexer (MADM), and digital cross-connects.

Though populated printed circuit boards (PCBs), power supply, lasers, chassis and software meant for SDH transmission equipment consist of essential parts of SDH transmission equipment and are thus within the scope of the product under probe, it is clarified that these components are “within the scope of the product under consideration only if the said components are meant for SDH transmission”.

Applicant information

In its initiation notification, the Designated Authority has said the application seeking for imposition of anti-dumping duty is filed by Tejas Networks Ltd, Bangalore, a major producer of the subject goods and is supported by Measurement & Control Ltd. The applicant has claimed that there is little difference in the subject goods produced by the domestic industry and the subject goods imported from China and Israel.

The applicant has advanced information on various parameters pertaining to material injury that cover dip in market share, significant imports in absolute terms as also relative to production and consumption in the country, significant price undercutting leading to price depression in the market, price underselling, decline in profitability, return on investment and cash flow.

History of dumping

The period of investigation is April to December 2008, even as the injury investigation period would cover 2005-06, 2006-07 and 2007-08. The applicant has pleaded for retrospective imposition of dumping duty on the grounds that there is history of dumping and the dumping margin determined is too significant with massive volume of imports in relatively short span and injury to the domestic industry arguably aggravating.

Hence the Authority deems that there is prima facie evidence justifying imposition of retrospective duty after its probe to impose preliminary duty confirms dumping incontrovertibly.