New UK Measures to Tackle Dumping of Optical Fibre from China

The Trade Remedies Authority (TRA), which is an arm’s length body of the UK government that exists to tackle unfair import practices and unforeseen surges of imports, has today recommend the introduction of new trade remedies to protect the country’s optical fibre industry from “harm caused by low-priced imports from China“.

Optical fibre cables transmit data using laser light and come in all sorts of different sizes and designs. Some are used in the UK’s Access Network to help bring gigabit-capable Fibre-to-the-Premises (FTTP) broadband closer to homes, while others are used for core network connectivity, subsea links or high-capacity Ethernet connections (leased lines) for businesses and backhaul etc.

The cables themselves are fairly cheap, at least when compared with legacy copper lines, but they still attract a fair cost when deployed at scale – something a lot of networks operators are currently doing. Such cables can be purchased from various UK and European suppliers (e.g. Emtelle, Hexatronic, Prysmian etc.), but they may also be imported from countries like China.

Last year we reported that a complaint by Prysmian Cables & Systems Limited seemed to have prompted the TRA to open two investigations into imports of single-mode optical fibre cables from China. The first (AD0021) was an anti-dumping investigation to determine whether imports of these products are being dumped in the UK at prices below what they would sell for in their home country. The second (AS0022) was an anti-subsidy investigation to determine whether the Chinese imports entering the UK market are also benefiting from subsidies which lower their production costs.

The New Remedies

Overall, the TRA has determined that there is “already damage to the UK industry“, having found “clear evidence of price undercutting”, indicating that UK businesses are struggling to compete with the dumped imports. The TRA therefore recommended that the Secretary of State for International Trade put in place a provisional measure on these imports while it completes its investigation (details).

Under the new provisional measure, importers will need to provide a guarantee (in the form of cash, bond or bank guarantee) to HM Revenue and Customs (HMRC) that shows they can pay the duty that they may ultimately be required to pay on imports of these goods. This will help make sure UK businesses that make similar goods don’t suffer further damage from these imports while the TRA completes its investigation.

Oliver Griffiths, TRA Chief Executive, said:

“Optical fibre cable provides higher speeds and bandwidth and as such plays an important role in meeting the UK’s internet needs. The interim measures the TRA has recommended will ensure UK producers are able to compete with imports and are able to continue supplying this vital growth industry.”

The TRA is also carrying out a separate investigation to determine whether the Chinese imports entering the UK market are also benefiting from subsidies which lower their production costs. This investigation will report its initial conclusions soon and both cases are expected to conclude this summer, once the TRA’s final recommendations are submitted to the Secretary of State for Business & Trade.