CVD likely on Malaysian Clear Float Glass

CVD likely on Malaysian Clear Float Glass

New Delhi: India may impose a countervailing duty on the imports of Clear Float Glass from Malaysia based on an application filed by Asahi India Glass, Gold Plus Glass Industry, Saint-Gobain Glass India and Sisecam Flat Glass India alleging that subsidized imports were harming the domestic market.

“Imposition of countervailing measures would remove the unfair advantages gained by subsidization and create level playing field,” the Directorate General of Trade Remedies (DGTR) said in a notification in which it suggested a countervailing duty of 4.02-11.15% of the landed value of the exported product for five years.

Clear Float Glass is used in construction, refrigeration, mirror and solar energy industries, among others.

In the notification, the authority said that the domestic industry has submitted that it is currently going through a deep crisis due to the prolonged lockdown in India.

“They have further submitted that Float glass production is a continuous process, and therefore, the domestic industry has no choice but to continuously produce the subject goods despite poor off-take in the market,” it said.

The domestic industry also said that once the current Covid-19 crisis gets over, India will become the hot destination for exports of the subject goods from Malaysia particularly in view of the fact that their major markets including the European Union have been severely affected by the Covid-19 crisis.

In its final findings, the DGTR concluded that the product under consideration has been exported to India from Malaysia at subsidized price, the domestic industry has suffered “material injury due to subsidization”.

“Imposition of countervailing duty would not restrict imports from the subject country in any way and, therefore, would not affect the availability of the products to the consumers,” it said, adding that the duty might affect the cost of the subject goods.

While DGTR- a quasi-judicial body under the commerce and industry ministry-recommends the duty, the final call to impose it is taken by the finance ministry.

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