Price dumping that is the sale of goods below production costs or at prices significantly lower than in the domestic market, poses a significant challenge to the economies of importing countries. In recent years, fiber-optic cables imported from China and India into the European Union have become one of the most important topics in this regard especially in the area of telecommunications.
To reduce the negative aspects of the above, the EU has at its disposal tools such as anti-dumping duties to level the playing field for local producers. The European Commission has already used this tool by finally setting the level of duties for cables from China at 39.4% to even 88% in 2023.
At the same time, at the end of 2023. a procedure was launched to check imports from India. After a 7-month investigation, there are preliminary results of the analysis and the EC has decided to impose a provisional anti-dumping duty of 8.7% to 11.4% on fiber optic cables imported from India. The amount varies from manufacturer to manufacturer and was determined based on an analysis of sales to individual suppliers and the final measures are to be determined by the end of the investigation, i.e. January 2025 at the latest.
With these types of activities taking care of the local EU market, remember that the production of fiber optic cables requires high quality standards to ensure the reliability and durability of telecommunications networks. Price dumping is often associated with lower production costs, which can lead to compromises on quality. As a result, cheaper cables can be less durable and less efficient, which in the long run means higher network maintenance and repair costs.
At the same time, as a manufacturer whose production facilities are located in the EU, we do everything to maintain the high quality of the described group of products while trying to optimize production costs as much as possible. It should also be remembered that by buying from EU manufacturers we do not expose ourselves to price fluctuation caused by introduced customs duties, which can be of considerable importance in the case of long-term projects.
We encourage you to read the details of the EC’s findings:
https://tron.trade.ec.europa.eu/investigations/case-view?caseId=2692
