Recent decision of the government to impose additional CVD/anti-subsidy duty of 9.74%-11.15% on imports of ‘clear float glass’ from Malaysia will make the imports costlier and also will encourage the domestic manufacturers to go for price hike. Meanwhile, this will also encourage the use of domestic glass over the imported ones. According to analysts, ADD + CVD could increase the cost of imports between 19-34% in India.
It may be remembered here that Asahi India Glass along with a consortium of glass manufacturers had earlier filed for the imposition of countervailing (CVD)/anti-subsidy duty on the import of ‘clear float glass’ from Malaysia with the designated authority. The conclusion of the investigation has led to imposition of around 10% additional CVD on key Malaysian exporters. This action coupled with the earlier renewed anti-dumping duty (ADD) could effectively lead to price increase of imports into India by 19-34%. Float glass is mainly used in automobiles and construction.
Malaysia accounted for 81% of total imports of glass into India. Before taking the final decision, the government evaluated various aspects of subsidies provided in Malaysia with key factors being a) industrial gas subsidy, b) grants for market development, and c) various tax exemptions. Key beneficiaries like Xinyi group and Kibing group were found to have availed up to 20% subsidy benefits, hence, CVD rates of 9.74%(Xinyi) and 11.15% (Kibing) have been notified.