On 10 September 2018, DGAD initiated anti subsidy investigation on imported Continuous Cast Copper Wire Rods originating from Indonesia, Malaysia, Thailand and Vietnam based on the petition filled by M/s Hindaco Industries and M/s Vedanta Industries on behalf of the Indian domestic industry.

The product under investigation is continuous case copper wire rods, which classified under custom sub headings 7407.1010, 7407.1020, 7408.1920, 7408.1990, 7409.11, and 7409.19. The period of investigation in this investigation is April 2017 to March 2018. While, for the injury investigation period is 2014 – 2017 and the POI.

Based on the request from the petitioners, DGAD has found prima facie evidence that the producers and exporters of the product concerned in the subject countries have benefitted from a number of subsidy programs, granted by the Government of respective subject countries. Further, the Authority found that such subsidized imports are causing material injury to the domestic industry in India through their volume and price effect. Below is the list of Indonesian Government programs that alleged as subsidy program:

a.       Export Financing and Export Credit

1.  Export financing from Indonesia EXIM

2.  Exporters being reimbursed for their losses

b.       Various loans provided by Mandiri Bank

1.  Investment Loan

2.  Loan for entrepreneur

c.       Tax Incentives and VAT Exemption

1.    Exemption on import duty

2.    Import duty drawback

3.    Income tax on dividend

4.    Reduction of net taxable income

5.    Carry forward of losses

6.    Postponement of payment of import duty on importation of capital goods

7.    Exemption of duty on raw material and supporting goods production purpose

8.    Exemption from income tax on Imports of certain goods if the company located in SEZ

9.    Reduction in income tax for investors investing in SEZ

10.Pioneer industry status

11.Income tax benefit for listed investment