There are Pros & Cons to the Anti-Dumping Duty on Mono-Toner Cartridges: Mr. Sandeep Sanghvi, Itone

– Mr. Sandeep Sanghvi, Managing Director, Itone (India) Pvt Ltd

Anti-dumping duty on mono-toner cartridges is in fact beneficial for the government, in terms of increase in the revenues from the duty imposed imports. It will also benefit the remanufacturing industry to some extent, since remanufacturing cartridges will become more cost-effective. It will lead to the increase in sales of some components and raw materials for remanufacturing provided by the domestic brands. 

There is scope for increase in local manufacturing of mono-toner cartridges and it can also encourage the foreign companies to set up manufacturing plants in India.

On the other hand, ADD will lead to increase in the prices of mono-toner cartridges which will eventually be passed on to the customers. Next, since the OEM cartridges sell at a much higher price, so the price expected price increases in the cartridges will be easily absorbed.

However, the ADD will have limited effect on the quantities imported; in other words, imports will continue as usual. There are thousands of different types of cartridges, and only a few variants are currently manufactured or assembled in India. At present, it is mostly cartridge assembling than manufacturing. At the same time, the quality of raw materials used is still not on par with the imported ones.

Another question is why is there no ADD on OEM cartridges? Imposing ADD on OEM cartridges would probably nudge the OEM to think about manufacturing in India. Since the OEMs sell their cartridges worldwide if they do manufacture in India, they will have the advantage of manufacturing in high volumes and Economies of Scale.

Covered By: Imaging Solution / Itone

If you have an interesting Article / Report/case study to share, please get in touch with us at editors@roymediative.com , roy@roymediative.com, 9811346846/ 9625243429