The Hindu Business Line : Polystyrene industry seeks removal of dumping duty

NORMALLY when the domestic industry pleads for levy of anti-dumping duty on imported products, it seldom seeks for its removal lest its cost competitiveness to stay alive would be in jeopardy, even if other user industry of the said imported products demand the removal of the anti-dumping duty.

But in a strange case of corporate responsibility and good governance, the domestic manufacturers of polystyrene, a versatile thermoplastic resin available in wide range of formulations from general-purpose crystal and impact grades to highly specialised resins, have argued for the removal of anti-dumping duty which they themselves had petitioned for its imposition with the Designated Authority.

The product under investigation was being imported from South Korea, Japan, Malaysia and Chinese Taipei.

In its final findings, the Authority said that in recent months, petroleum prices have hit record highs leading to high polystyrene prices, which drive users away thereby curbing organic growth.

Given this situation, supplies of polystyrene from the subject countries, which are currently, also subject to anti-dumping duties, are affected and have sharply declined in volume.

The interesting part of this review investigation is that the original petitioner Polystyrene Producers' Association, Mumbai has said, "as responsible corporate citizens of India, we do not want our Government to put into place a levy which in today's terms will have little impact. We will closely track import volumes and prices once the duty lapses and seek your urgent intervention in case required".

The petitioner also stated that "within the factual matrix of this case, the recurrence of injury in the absence of anti-dumping duty is more than likely, as the exporters burdened with large installed capacities, stagnant domestic demand and freed from anti-dumping duties will most probably increase their volume once the duty is lifted." Notwithstanding this, the petitioner sought the removal of the anti-dumping duty.

Hence on the basis of submission made by the domestic industry pleading withdrawal of the application for imposition of anti-dumping duty on polystyrene, the Authority has recommended discontinuance of the anti-dumping duty it earlier recommended, which was subsequently implemented by the Revenue Department of the Finance Ministry.

In yet another case, the Authority has notified initiation of anti-dumping investigations into the import of narrow woven fabrics being imported from China and Chinese Taipei. The petition has been filed by Sky Industries Ltd, Mumbai who constitutes a major proportion of production of the country's production of narrow woven fabrics.

The period of investigation is January 1, 2003 to December 31, 2003. Major uses of narrow woven fabrics (both the hook tape and a loop tape) are in industries such as garment industry, leather garments/furnishings, surgical and orthopaedic apparatus, shoes and footwear manufacturing, luggage/bag manufacturers, toys, plastic goods, automobile upholstery and various other industry segments.