The government can impose anti-dumping duties on a certain variety of yarns from China, Indonesia and Vietnam in order to protect domestic players from cheap imports.
The investigation arm of the Ministry of Commerce, Directorate General of Commercial Remedies (DGTR), has initiated an investigation into alleged dumping of ‘viscose yarn’ by companies in these three countries following a complaint filed by the Manufacturers Association of Artificial yarn from India on behalf of the national industry.
The association has submitted a request to management for an investigation into imports from these countries to impose the anti-dumping duty.
He claimed that the dumped imports from these countries are causing significant damage to the national industry.
DGTR, in a notification, said that on the basis of prima facie evidence presented by the association on the dumping of the product by these nations, “the authority hereby initiates an investigation.”
In the investigation, DGTR will determine the existence, extent and effect of any alleged dumping.
If it is established that dumping has affected the national industry, management would recommend the imposition of the duty.
The Ministry of Finance will make the final decision on the imposition of duty.
The investigation period is from April to December 2019. I would also analyze the 2016-19 data.
The thread is mainly used to weave or weave for the production of cloth for eventual use in clothing.
Countries carry out an anti-dumping investigation to determine if their national industries have been affected by an increase in cheap imports.
As a countermeasure, they impose rights under the multilateral regime of the World Trade Organization.
The duty is aimed at guaranteeing fair trade practices and creating a level playing field for domestic producers with respect to foreign producers and exporters.