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India imposes anti-dumping duty on Chinese polyester yarn

PTI | Updated on: 10 Jul 2018, 04:34:55 PM
India imposes anti-dumping duty on Chinese polyester yarn (Representative Image)

New Delhi:

India has imposed an anti-dumping duty of up to USD 528 per tonne for 5 years on a Chinese polyester yarn used in automobile and other industries. The move will provide a level playing field to domestic players and guard them against below-cost imports.

Commerce Ministry’s investigation arm Directorate General of Anti-dumping and Allied Duties (DGAD) had recommended the duty after a probe into alleged dumping of ‘High Tenacity Polyester Yarn’ from China.

The probe followed complaints by the domestic players, who alleged that below-cost import of the yarn from China is hurting the industry in India. The finance ministry has imposed the duty on the product after considering the recommendations of DGAD.

"The anti-dumping duty imposed…shall be effective for a period of five years (unless revoked, superseded or amended earlier) and shall be paid in Indian currency," the Finance Ministry said in a notification.

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The duty imposed is in the range of USD 174-528 per tonne. High Tenacity Polyester Yarn, also called industrial yarn, is used for the manufacture of tyre cord fabric, seat belt webbing, ropes, coated fabric, conveyor belt fabric and automotive hose.

Countries carry out the anti-dumping probe to determine whether their domestic industries have been hurt because of a surge in below-cost imports. As a countermeasure, they impose duties under the multilateral regime of WTO.

The duty is also aimed at ensuring fair trading practices and creating a level-playing field for domestic producers with regard to foreign producers and exporters.

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India has already imposed anti-dumping duty on several products to check cheap imports from countries including China, with which India has a major concern of widening trade deficit. The deficit has increased to USD 63.12 billion in 2017-18.

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First Published : 10 Jul 2018, 04:30:13 PM