India Initiates Anti-Dumping Investigation on Viscose Rayon Filament Yarn Imports from China
India’s Directorate General of Trade Remedies (DGTR) has launched an anti-dumping investigation into the import of Viscose Rayon Filament Yarn (VFY) above 75 deniers from China. This action follows a petition filed by the Association of Man-Made Fibre Industry of India and Grasim Industries Limited, alleging that dumped imports are causing material injury to the domestic industry.
Allegations and Impact on the Domestic Industry
The petition claims that imports from China are being sold in the Indian market at prices significantly lower than their normal value, leading to price suppression and severe financial injury to domestic manufacturers. The investigation aims to assess the extent of dumping and its impact on the domestic market. DGTR’s notification highlighted key concerns such as:
- Rising import volumes
- Increasing inventories
- Negative returns on capital employed
- Financial losses to domestic producers
Scope of Investigation
The investigation will cover VFY above 75 deniers, excluding yarn produced through Spool Spun Technology and specific embroidery threads. These products fall under Chapter 54 of the Customs Tariff Act and are primarily imported under various subheadings of tariff item 5403.
DGTR will examine the period from October 1, 2023, to September 30, 2024, with injury data reviewed for the past three financial years. The domestic industry asserts that locally produced VFY is technically and commercially substitutable with the imported product and should be treated as a ‘like article’ under trade remedy rules.
Potential Outcomes
The investigation aims to determine whether anti-dumping duties should be imposed to ensure a fair competitive environment for domestic manufacturers. If the allegations are upheld, the Indian government may introduce anti-dumping duties on Chinese imports to safeguard the domestic industry.