The ACP industry is upbeat against recommendation of ADD on imports of Aluminium coil as according to the industry players the industry is totally dependent on imports of raw material and if the AAD imposes, the ready to used goods will be much more costly. The industry is already under pressure with increasing freight cost and raw material cost due to which the input cost has increased by 25% and margin has reduced drastically.
The DGTR has recommended the imposition of ADD against imports of Aluminium Foil up to 80 microns. The anti-dumping investigation was initiated by the authority based on a complaint filed by Hindalco Industries Ltd. With respect to exclusion on colour coated, the Authority notes that the domestic industry has given the evidence that it produces the product and engages job workers for merely applying the colour to the products based on the customer specifications.
Mere job working with respect to application colour/paint does not warrant exclusion of the product. The domestic industry does not part with the title of the goods. In any event, the cost towards color coating is not significant and, therefore, it will be incorrect to say that the domestic industry does not manufacture color coated aluminium coils.
Having regard to the lesser duty rule followed by the Authority, the Authority recommends imposition of the anti-dumping duty equal to the lesser of the margin of dumping and the margin of injury so as to remove the injury to the domestic industry. The Authority, therefore, considers it necessary to recommend imposition of the definitive anti-dumping duty on all imports of the subject goods originating in or exported from China PR, from the date of notification to be issued in.
Commenting on the issue Mr Pawan Garg, Director, REYNOARCH said, “The government has proposed to impose an ADD of Rs 35/kg on imports of Aluminium Coil irrespective of the country whether it is China or any other country. We at the association level are fighting against it and trying not to impose the duty. Our team is in contact with the finance ministry for this cause.
Mr. Ram Agarwal, Director, Crossbond stating this move as a biased decision by DGTR and their approval for the imposition of anti-dumping duty is not genuine. He said, “DGTR has prepared the report with the statement that they will give it by having a job of color coating and mentioned a line “COLOUR COATING”- that does not consist of anti-dumping. They have recommended nearly 12% ADD that will cost the industry and lead to the product being more costly to the customers.”
“Indian ACP industry requires nearly 5000 ton of Aluminium coil per month and is totally dependent on imports because the country does not have any manufacturer who gives color coated Aluminium coil. For an ACP sheet manufacturing 40% input cost comes from coil only. In the last one year Aluminum price has increased by Rs 100 per kg which is posing a tough situation for the industry,” added Mr Pawan Garg
With imposition of ADD the price will increase to the next level resulting in much pressure in the industry that the market will not accept in any way. In the last two months only nearly 17% price has increased and we are expecting another 10% increase due to the China factor, so the industry is already stressed,” he reasoned.