India Launches Review of Countervailing Duty on Aluminium Wire Imports from Malaysia

India to Review Countervailing Duties on Aluminium Wires from Malaysia

The Indian government has initiated a probe to review the need for extending countervailing duties levied on aluminium wires imported from Malaysia. This move follows a complaint by certain domestic players, as per a recent notification.

The centre imposed these duties on September 24, 2021, for a period of five years. The existing levy period will end on September 23, 2026. The Commerce Ministry's Directorate General of Trade Remedies (DGTR) has received an application from Hindalco Industries, Vedanta Ltd, and Bharat Aluminium Company, stating that cessation of the existing duties would impact domestic manufacturers.

The applicants have alleged that the exporters of Malaysia continue to benefit from countervailable subsidies provided at various levels by the Malaysian government. They have claimed that there is a likelihood of continuation or recurrence of subsidization and consequent injury to the domestic industry in the event of cessation of the existing anti-subsidy duty.

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The DGTR has initiated a sunset review investigation to review the need for continued imposition of countervailing duty on the imports and examine whether the expiry of the existing countervailing duty is likely to lead to continuation of the subsidy and impact on the industry. If found that the removal of the duty would impact Indian firms, the directorate would recommend the continuation of the duty to protect the domestic industry.