India has imposed anti-dumping duty of up to US$ 528 per tonne for five years on a Chinese polyester yarn used in automotive and other industries. The move will provide a level playing field to domestic players and guard them against below-cost imports, says The Indian Express.
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. High tenacity polyester yarn, also called industrial yarn, is used for manufacture of tyre cord fabric, seat belt webbing, ropes, coated fabric, conveyor belt fabric and automotive hose.
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 “The anti-dumping duty imposed…shall be effective for a period of five years (unless revoked, superseded or amended earlier) and shall be paid in Indian currency,” said the Finance Ministry. The duty imposed is in the range of US$ 174 to US$ 528 per tonne.
Countries carry out anti-dumping probe to determine whether their domestic industries have been hurt because of a surge in below-cost imports. As a counter measure, they impose duties under the multilateral regime of WTO.
The duty is also aimed at ensuring fair trading practises and creating a level-playing field for domestic producers with regard to foreign producers and exporters. 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, which has increased to US$ 63.12 billion in 2017-18.
