GCC may delay ADD imposition

GCC may delay ADD imposition

0
Comments Off on GCC may delay ADD imposition

Gulf Cooperation Council has reportedly told the representatives of Morbi ceramic manufacturers that GCC will take the views of the Morbi players into account before arriving at a decision on imposing anti-dumping duty on Indian ceramic tiles imported by the Persian Gulf countries. This has come as a big relief to the Morbi ceramic tiles manufactures who have been facing challenges on multiple fronts in recent times. Gulf Cooperation Council (GCC) is a political and economic union of Arab states and g Bahrain, Kuwait, Oman, Qatar, Saudi Arabia and United Arab Emirates (UAE) are its member countries.

Also, it is learnt that the decision to impose anti-dumping duty may not come in the near future but may be taken at a later stage, possibly by the year end. Also, according to some Morbi players, possible anti-dumping duty may not be as high as was earlier feared and it may be much lesser. Last year it was reported that GCC was likely to finalize a temporary anti-dumping duty on Indian tiles. GCC was likely to impose anti-dumping duty of 15% for six months on Indian tiles by 5th Jan’19. However, till date no decision has been taken in this regard.    

India is the second largest manufacturer of ceramic tiles in the world accounting for more than 7% of world’s production. The consumption of ceramic tiles in India during the period CY07-17 grew by CAGR of 6.71% while the production of ceramic tiles in India, during the same period registered a CAGR of 10.87%, meaning India produced substantial surplus which found their way into international market.

India exports ceramic tiles mainly to countries like Saudi Arabia, Mexico, Brazil, UAE, Oman and Kuwait which collectively account for about 65% of the total exports from India. In calendar year 2017, India exported 228 million SQM of ceramic tiles which was a growth of 23% over previous year.