Anti-dumping duties imposed by EU on Indian Optical Fiber Cables

After a six-month-long investigation, the European Commission has made a milestone ruling on Indian Optical Fiber Cables Manufacturers, exporting to Europe. The decision comes after an extensive investigation initiated by Europacable, on behalf of European industry of optical fiber cable (OFC) manufacturers, which filed a complaint on October 3, 2023. The complaint alleged that imports of optical fiber cables originating in India were being dumped in the European market, causing harm to European manufacturers.

Anti-dumping laws are usually put in place to shield domestic industries from unfairly priced imports. In the past, the Europe had imposed anti-dumping duties on OFC imports from China in November 2021. Subsequently, the European Commission tightened these measures further in August 2023 by doubling its anti-dumping duties on optical fiber cables from China, following an investigation which found that Chinese exporters were attempting to hinder the effects of the original measures.

Similar investigation was carried out on Indian companies and Anti-dumping duty has now been imposed on all Indian Optical Fiber Cable manufacturers except HFCL and its subsidiary HTL Limited. The Commission’s decision came after a six-month-long investigation, during which the exempted company’s full cooperation and transparency believed to have played a crucial role. The European Commission concluded that no evidence of dumping was found in HFCL’s case, resulting in its exemption from the duties. This decision contrasts with the imposition of anti-dumping duties on other Indian manufacturers, highlighting HFCL’s adherence to fair trade practices and international regulations.

By adhering to fair trade practices and transparency, HFCL sets a benchmark for Indian manufacturers aiming to compete globally, enhancing India’s reputation as a reliable and competitive player in international manufacturing, in the backdrop of initiatives like “Make in India for the World”

The exemption significantly boosts Europe’s digitalization goals. High-quality optical fiber cables are essential for expanding high-speed internet access and enhancing digital infrastructure across the continent.

Chronology of Events:

• October 3, 2023: Europacable files a complaint, initiating an anti-dumping proceeding concerning imports of optical fiber cables from India.
• November 16, 2023: Notices are sent to Indian OFC manufacturers. The European Commission requests initial sales data from export producers, selecting several companies based on their export volumes.
• January 5, 2024: The exempted company fully cooperates, providing comprehensive data covering manufacturing, sales, exports, and pricing for October 2022 to September 2023, along with detailed records for the past three financial years.
• April 11-22, 2024: European Commission members conduct physical verification at the exempted company’s facilities, meticulously examining whether it was undercutting prices in Europe compared to its domestic sales prices.
• June 14, 2024: The European Commission issues a provisional ruling, exempting the company’s products from anti-dumping duties.
  Scope of Anti-Dumping Duties:

The anti-dumping duties apply to single-mode optical fiber cables originating in India, excluding cables below 500 meters with operational connectors and submarine use cables with plastic insulation and metal modules containing fibers.

This decisive ruling reaffirms the exempted company’s position in the European market and sets a precedent for fair business practices in the international trade of optical fiber cables.
BCS Bureau