India’s Directorate General of Trade Remedies (DGTR) has begun an anti-dumping investigation into imports of Viscose Rayon Filament Yarn (VFY) exceeding 75 deniers from China. This step was prompted by a petition from the Association of Man-Made Fibre Industry of India and Grasim Industries Limited, who argue that the domestic sector is incurring significant harm due to low-priced imports from China.
The scope of the investigation covers VFY above 75 deniers, with the exception of yarn made using Spool Spun Technology and certain embroidery threads. The product falls under Chapter 54 of the Customs Tariff Act and is mainly imported under various subheadings of tariff item 5403. Petitioners claim that these imports are entering the Indian market at prices well below the normal value, leading to price suppression and causing notable injury to local producers. Data provided indicates a rise in import volumes, growing inventories, and financial setbacks, including negative returns on capital employed.
The DGTR has found that the dumping margin—the gap between the normal value and export price—surpasses the de minimis threshold, confirming the presence of dumping under Indian trade remedy regulations. The investigation will cover the period from October 1, 2023, to September 30, 2024, while also reviewing injury data for the previous three financial years.
Domestic producers maintain that VFY made in India is both technically and commercially interchangeable with the imported variant and should therefore be regarded as a ‘like article’ under the relevant rules. The purpose of the investigation is to assess whether dumping exists, the extent of any resulting injury, and if anti-dumping duties should be imposed. Should the findings support the claims, duties may be enacted to ensure fair competition for Indian manufacturers.Source: India begins probe on viscose rayon filament yarn imports from China