India’s Directorate General of Trade Remedies (DGTR) has initiated an anti-dumping inquiry into imports of Viscose Rayon Filament Yarn (VFY) exceeding 75 deniers, which are either originating from or exported by China. This move comes in response to a petition from the Association of Man-Made Fibre Industry of India and Grasim Industries Limited, who claim that the local industry is experiencing significant harm due to these imported goods being sold at dumped prices.
The investigation, referred to as the Chinese Viscose Yarn Import Inquiry, focuses on VFY above 75 deniers (excluding yarn made using Spool Spun Technology as well as certain embroidery threads), categorized under Chapter 54 of the Customs Tariff Act and primarily imported under several subheadings of tariff item 5403.
As per the petitioners, these dumped imports from China are entering the Indian market at prices considerably lower than their normal value, leading to price suppression and causing serious damage to the local industry. The submitted data indicates an increase in import volumes, a rise in inventories, and financial setbacks, including negative returns on invested capital, according to a notification from the DGTR.
The dumping margin, which refers to the gap between the normal value and the export price, has been determined to exceed the de minimis threshold, suggesting that dumping is occurring in accordance with Indian trade remedy regulations.
The DGTR will investigate the timeframe from October 1, 2023, to September 30, 2024, while also reviewing injury data from the previous three financial years. The domestic industry claims that VFY manufactured in India can be considered technically and commercially interchangeable with the imported variety and should be recognized as a ‘like article’ under the relevant regulations.
The goal of this investigation is to assess the presence and extent of dumping, the injury inflicted on the domestic sector, and whether the implementation of anti-dumping duties is justified. Should the findings corroborate the claims, duties might be imposed to create a fair competitive environment for local producers. The Chinese Viscose Yarn Import Inquiry underscores the importance of addressing these trade challenges to support the domestic industry.
