The Hindu Business Line : Dumping probe on yarn imports from China

The Designated Authority has found sufficient evidence of the normal value of the subject goods in China being significantly higher than the ex-factory export price, indicating that exporters from China are dumping partially oriented yarn in India.

New Delhi , Dec. 30

THE Designated Authority in the Commerce Ministry has set off anti-dumping investigation into the import of partially oriented yarn (POY) from China in a bid to determine the existence, degree and effect of alleged dumping of the subject goods originating in or exported from China.

In an initiation notification, gazetted recently, the Authority said that POY is yarn of polyester and is an intermediate, which is subject to further processing, for instance, texturing or draw twisting, to render it suitable for weaving or knitting into fabrics.

The Authority said that it received a written petition represented by the Association of Synthetic Fibre Industries. Apart from the dozen manufacturers who have submitted detailed information in the prescribed proforma for initiation of investigation, five manufacturers, including Reliance Industries and Sanghi Polyester, are also backing the petition, pleading for initiation of probe into the alleged dumping of the subject goods.

One of the producers Welspun Syntex Ltd has been stated to have imported a meagre quantity of 48.5 tonnes from Chinese Taipei and China during the period of investigation, which is from April 1, 2004 to June 30, 2005 (15 months).

The injury investigation period would, however, encompass the span from 2001-02 to 2003-04 and the period of investigation.

Since the petitioner has submitted that such a scant quantity constituting about .0057 per cent of aggregate domestic consumption might be ignored, the contention of the domestic petitioner on this score has been accepted.

The Authority held that export price of the subject goods from the subject country has been determined by considering DGCI&S data.

Accordingly, it was found that there is sufficient evidence that the normal value of the subject goods in China is significantly higher than the ex-factory export price, indicating that exporters from the subject country are dumping the subject goods.

Besides, parameters such as significant spurt in imports in absolute terms as also relative to production and demand in India, marked price undercutting leading to price depression in the market, decline in sales value despite increase in sales volume, erosion in profits, cash flow and return on investments, decline in market share of the indigenous industry and resultant increase in market share of the imports, decline in employment collectively show that the domestic industry has suffered material injury due to dumping of subject goods from China.

Hence, the Authority initiates anti-dumping investigation into the imported POY from China.