Indian Department of Commerce has imposed countervailing duties on aluminum wires imported from Malaysia for five years. The move could protect the domestic industry from the injury caused by such imports subsidized by Malaysia.
The Directorate-General for Commercial Remedies (DGTR), an investigative arm of the Department of Commerce, concluded its investigation and stated that CVD is necessary to offset the subsidy. DGTR, in a notification dated June 30, recommends the imposition of a definitive compensatory tariff for five years.
Meanwhile, Finance Ministry will take a final call in this matter.
Vedanta and Bharat Aluminium Company had filed a plea with DGTR regarding this issue, demanding an anti-subsidy investigation. DGTR recommended a tariff of 6.87pc and 16.5pc on the above-mentioned products.
As per World Trade Organisation (WTO) trade norms, if exporting country subsidizes its exports, then the trading partner may impose CVD to protect its domestic industry. Subsidies are often offered by exporting countries to make their products competitive in the global market.