India to introduce ‘anti-dumping’ duty on Chinese telecoms equipment

29 Dec 2010

India is set to impose a special tax on imports of Chinese and Israeli IT equipment including that used in the telecoms sector, to protect domestic manufacturers, reports Hindu Business Online. The so-called ‘anti-dumping’ duty on importing Synchronous Digital Hierarchy Transmission Equipment will range from 3% to 266% on the CIF (Cost, Insurance, Freight) value of imports, and can be backdated for around a year, the Department of Revenue indicated. ‘The anti-dumping duty imposed shall be levied for a period of five years [unless revoked, superseded or amended earlier] from the date of imposition of the provisional anti-dumping duty, that is, 8 December 2009 for the import from China and Israel,’ the department announced. The Directorate General of Anti-Dumping and Allied Duties (DGAD), a nodal agency under the Commerce Ministry, had recommended imposition of the duty after an investigation, whilst it is the responsibility of the finance ministry to impose the measure. Telecoms equipment providers affected include Alcatel-Lucent Shanghai Bell, ZTE Corporation and ECI Telecom.