HFCL Exempted From European Comomission’s Anti-Dumping Duties For Fair-Business Practise

HFCL Exempted From European Comomission’s Anti-Dumping Duties For Fair-Business Practise

HFCL sets the example of fair business practices, exempted from anti-dumping duties by the European Commission. The decision came after a detailed investigation commenced by Europacable, on a complaint filed by the European industry of Optical Fiber Cable (OFC) manufacturers. The European Commission found no evidence of dumping in the case of HFCL, hence being exempted from the duties. Unlikely other Indian manufacturers are imposed with anti-dumping duties, highlighting HFCL’s compliance with international regulations and fair business practices.

The European industry of Optical Fiber Cable (OFC) manufacturers alleged that Indian manufacturers overruled over-dumping regulations causing losses to the European manufacturers. And, Indian Optical Fiber Cables Manufacturers export to Europe in bulk.  So, the investigation took place.

Double Anti-Dumping Duty On Chinese OFC Manufacturers

Anti-dumping laws are made to protect the rights of domestic manufacturers from unprecedented-priced imports to lift the sales of goods and materials. In November 2021, Europe levied anti-dumping duties on OFC imports from China. Later on, the European Commission strictly doubled its anti-dumping duties on OFC, in August 2023, as Chinese exporters were found guilty of hindering original measures.

Similarly, the investigations were conducted on Indian companies, and on being found guilty, all the OFC manufacturing firms were imposed with anti-dumping duties, except HFCL and the subsidiary HTL Limited. The verdict came after a six-month-long investigation donned by the commission.

Chronology of Events

On the complaint by European OFC manufacturers filed on October 3, 2023, notices were sent to Indian OFC manufacturers on November 16, 2023. The European Commission asked for initial sales data based on export volumes from Indian OFC manufacturers. Noteworthily Indian firms were highly cooperative during all the investigations. On January 5, 2024, the Indian companies provided the commission with the past three financial years’ records and detailed data containing manufacturing, sales, exports, and pricing for October 2022 to September 2023.

The European Commission members conducted a physical verification on April 11-22, 2024, at the exempted company’s facilities, to conduct a meticulous examination of whether the prices are dropped in the European market than the domestic sales prices. On June 14, 2024, a provisional ruling was issued by the European Commission, exempting anti-dumping duties for HFCL and the subsidiary.

Scope of Anti-Dumping Duties

The anti-dumping duties target single-mode optical fiber cables manufactured in India. However, these duties do not apply to cables shorter than 500 meters alongside operational connectors or to submarine-use cables that have metal modules and plastic insulation containing fibers.

HFCL Sets Precedent Before the World

By following up the compliance to fair business practices and transparency in trade, HFCL sets a standard for Indian manufacturers to compete globally, inflating India's reputation as a competitive and trustworthy player in the international manufacturing ecosystem, set in the background of initiatives i.e. “Make in India for the World.”

Meanwhile, the exemption satisfies Europe's digitalization goals, as good-quality fiber cable is required for the expansion of speedy internet access, leading to an improved digital infrastructure in the content.

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