The Hindu Business Line : Anti-dumping probe into Chinese silk fabrics imports

EVEN as China faces safeguard duty for its surging exports of textile and clothing products to the United States and the European Union in the post-quota textile regime, India too has joined the bandwagon by initiating anti-dumping investigation into imported silk fabrics from China.

According to an initiation notification issued by the Directorate General of Anti-Dumping & Allied Duties (DGAD) here, the Authority has recently received a written petition from the Central Silk Board on surge in the import of fabrics from China.

The petition was backed by the Mysore Power Loom Silk Manufacturers Co-operative Society Ltd, Bangalore, Karnataka Weavers Federation, Silk Trade Association, Varanasi and Pure Silk Weavers Association, Surat.

The product under probe is silk fabric of weight 20-100 gms/meter and the fabric is produced from the basic raw material— raw silk. The petitioners contend that the silk fabric produced by the powerlooms in India is like article to the subject goods originating in or exported from China. The petitioners maintain that China has been treated as non-market economy by anti-dumping investigation authorities and as such normal value might be determined on a reasonable basis including the price payable in India for the like product.

The estimated normal value of silk fabric has been claimed on the basis of the cost of the major raw material, which is based on International Silk Association (ISA), France. Reasonable conversion cost, administrative, selling, general expenses and profit has been added to arrive at the estimate of normal value. The authority said that the normal value of the subject goods in the subject country is significantly higher than the ex-factory export price indicating that exporters into India are dumping the subject goods. The petitioners have furnished details on various parameters relating to injury to bear out that the share of imports from the subject country has increased in absolute terms as well as in relation to the demand of the product in India.

Hence, the authority said evidence indicates causal link between the dumped imports of the subject goods and the injury caused to the domestic industry and hence it initiates anti-dumping probe into the existence, degree and effect of alleged dumping of the subject goods originating in or exported from China. The period of investigation is from April 2003 to September 2004 (18 months).

Available provisional DGCI&S data for the import of silk yarn and fabrics meanwhile show that such imports from all countries surged by 41 per cent at $162.75 million during 2004-05 against $115.32 million in 2003-04.

It might be noted that the DGAD, on the basis of a petition filed by the Central Silk Board, had recommended imposition of anti-dumping duty on imported mulberry raw silk from China on July 17, 2002 and the final findings on this was notified in July 2003 by the revenue department.

The latest on Chinese silk fabrics is the second in a series of anti-dumping probe against Chinese silk, as the indigenous cottage industry producing silk cocoon and fabrics has pleaded for protection against cheap imports eroding its operational viability, silk industry sources said.

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