DGTR Initiates ADD Investigation on Copper Data Cables from China: Potential Impact on Electronics & Telecommunications Industry [Read Notification]

The Directorate General of Trade Remedies (DGTR) has initiated an anti-dumping duty (ADD) investigation on the import of copper data cables from China. The probe, which was initiated on the basis of complaints from Indian manufacturers is founded on the allegations that low-priced Chinese imports are flooding the domestic market and harming local businesses.

Indian producers Birla Cable Ltd. and Sterlite Technologies Ltd. were the two entities that petitioned the DGTR, contending that Chinese exporters were selling structured copper data cables in India at unfairly low prices, leading to price suppression, falling profits, and shrinking market share for local producers. A preliminary assessment conducted by the DGTR found prima facie evidence of dumping and injury, prompting a full-scale inquiry.

The products under consideration include structured copper data cables such as CAT 5e, CAT 6, CAT 6A, CAT 7, CAT 7A, and patch cords, all of which are commonly used for LAN (Local Area Networks) connections, telecommunications, high-speed data transmission, networking and to provide audio-video connections. These copper cables are core to modern IT infrastructure, consumer electronics and telecommunications systems, making them indispensable across industries.

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Imports from China and Bilateral Context

China is the world leader in supply chains for electronic components. In India, almost every electronic device ranging from routers to household appliances come bundled with Chinese-made cables, a clear reflection of how dependent the industry is on Chinese-origin copper cables. While cost competitiveness amongst market players has fueled widespread use, India has often raised concerns over dumping practices.

With domestic manufacturing being pushed under the “Make in India” campaign, the investigation is also seen as part of India’s extensive strategy to counterbalance trade flows with China.

The applicant producers represent a significant portion of India’s copper cable manufacturing industry, with their primary concern being their inability to compete with aggressive pricing from the northern neighbour.

Period of Investigation and Basis of Dumping

The Period of Investigation is from April 1, 2024 to March 31, 2025 with injury assessment covering FY 2021-22 to FY 2023-24.

The investigation shall determine a number of factors including:

Normal Value: Constructed using domestic cost estimates, since China is treated as a non-market economy.

Export Price: Derived from import data maintained by the Directorate General of Systems and Data Management, which shall be adjusted for freight, insurance, and related costs.

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Dumping Margin: Preliminary comparison shows margins above the de minimis level, indicating dumping.

DGTR has invited all stakeholders including producers, importers and exporters to submit any relevant data within 30 days as per the formats prescribed by them. Parties may claim confidentiality but are required to provide non-confidential summaries. DGTR shall also maintain a public file to ensure transparency in the process.

If parties fail to cooperate or delay submissions, DGTR may declare them non-cooperative, relying on “facts available” to reach conclusions - resulting in potentially disadvantageous outcomes for parties.

The DGTR probe could significantly affect the electronics and telecommunications industries which are heavily reliant on copper LAN/data cables to provide goods and render services . Should ADD be imposed, it may reshape pricing and supply dynamics, bolstering India’s domestic industry while raising costs for downstream sectors that are dependent on Chinese imports.

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