EU Hits India With Tariffs Up to 31.2% on Water, Sewage Pipes

The European Union imposed tariffs as high as 31.2 percent on water and sewage pipes from India in a bid to curb competition for Cie. de Saint-Gobain SA.

The duties punish Indian exporters of ductile cast iron pipes for allegedly selling them in the 28-nation EU below cost, a practice known as dumping. The targeted companies include Jindal Saw Ltd., which faces the maximum duty rate, and Electrosteel Castings Ltd., which is subject to a 15.3 percent levy.

EU-based competitors including Saint-Gobain PAM in France, Saint-Gobain PAM Deutschland GmbH and Saint-Gobain PAM Espana SA suffered “material injury” as a result of dumped imports from India, the European Commission, the bloc’s executive arm in Brussels, said on Saturday in the Official Journal. The duties, which will take effect on Sunday, are for six months and may be prolonged for five years.

Indian exporters expanded their share of a shrinking EU market by 3.5 percentage points between 2011 and the 12 months through September 2014, the commission said. European manufacturers’ share of their home market fell by 2.5 percentage points over the same period, according to the commission.

The anti-dumping duties are the preliminary outcome of an inquiry that the commission opened in December 2014. The probe stemmed from a dumping complaint by Saint-Gobain PAM, Saint-Gobain PAM Deutschland and Saint-Gobain PAM Espana on behalf of producers that account for more than a quarter of the EU’s output of ductile cast iron pipes, which are also known as spheroidal graphite cast iron.

The EU is threatening to impose a separate set of duties on Indian exporters of ductile cast iron pipes to counter alleged subsidies. In March, the commission began an investigation in which it has nine months from the start to introduce provisional anti-subsidy duties and 13 months to impose “definitive” five-year anti-subsidy measures.

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