The European Union has proposed a levy of
7.30% on India manufactured CD-Rs. The new levy effects
mainly Moser Baer, a manufacturer that currently produces CD-Rs available
as Imation and MMore. Moser Baer is known for average quality discs and the
company ships about 40% of its stock to Europe.
 This duty is being proposed to countervail subsidies,
allegedly available to Indian manufacturers of CD-R's, under the duty free
import of capital goods (Machinery) scheme. Indian companies organised
under the Export Oriented Unit (EOU) scheme are permitted to defer payment
of import duties on import of capital goods.
Moser Baer is the only exporter of CD-R's from India to the European
Community (EC). Sales of CD-R's to the EC account for approximately 40 per
cent of the company's revenues. The company also produces other products
such as CD-R/W, DVD-R and DVD-R/W, which are not impacted by this duty.
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Source: HinduBusinessline.com
