India's trade remedies authority has recommended a five-year anti-dumping duty of $72 per 1,000 pieces on mobile covers imported from China. According to a gazette notification from the Directorate of Trade Remedies (DGTR) under Commerce & Industry Ministry, the authority recommends imposition of final anti-dumping duty equal to the lesser of the margin of dumping and the margin of injury on imports of subject goods originating in or exported from the subject country to remove the injury to the domestic industry. The $72 duty translates to approximately ₹7 per cover, representing a significant tariff increase on Chinese mobile cover imports.
The DGTR's detailed investigation revealed that imports captured nearly half of the domestic market, while the market share of the domestic industry reduced to about one-fourth of the market. As reported in the gazette notification, demand increased substantially over the injury period and has seen a growth of over 2.5 times that in the base year. Despite such increase in demand, the sales of the domestic industry and other producers have not increased commensurately with such growth in demand. The investigation found that around 10 of the more than 40 Indian mobile cover manufacturing units had shut down during the period of investigation, while several companies were operating at only 27 to 30 per cent of their production capacity.
Further imports of subject goods have shown a sudden increase in 2022-23, with further increase in 2023-24, and have declined in the period of investigation. According to the DGTR, almost all of imports into India are from China. The investigation found that imports in relation to production and consumption have also significantly increased over the injury period with decline in the period of investigation. Imports constitute 204 per cent and 51 per cent of the production of the domestic industry and Indian consumption respectively. In 2021-22, around 10 lakh mobile covers were imported into India from China, which had risen to around 765 lakh by 2023-24, meaning imports from China increased several-fold in just two to three years.
The ₹7 per cover duty impact is expected to remain below 1 per cent on retail prices, according to DGTR and industry estimates. This means consumers may not see a significant increase in mobile cover prices. The DGTR has excluded two Chinese companies from the proposed duty after finding that they were operating in accordance with applicable rules. Additionally, premium mobile covers made from aramid fibre will also be excluded from the duty as such covers are not manufactured in India. However, mobile cover manufacturer Spigen had sought an exemption for certain transparent covers, but the DGTR did not accept the request.
The DGTR has only recommended imposing the duty, which has not been implemented yet. The Finance Ministry will now take a decision on the recommendation, and the duty will come into effect only if the ministry approves it and issues a notification. This means that Chinese mobile covers have not become immediately more expensive. The matter began after Indian mobile cover manufacturers complained that covers were being imported from China at very low prices, making it difficult for Indian companies to compete in the market. The influx of cheaper Chinese covers increased pressure on Indian manufacturers, with the average price of a mobile cover imported from China falling from ₹18 in 2021-22 to just ₹2.14 during the period under investigation.
