The Hindu Business Line : Commerce Ministry recommends imposition of definitive anti-dumping duty

Under pressure
Chinese producers are under pressure to restrict production, which would lead to higher fixed costs. They are also under severe pressure to export more so as to keep their cost of production at lower level, the Authority said.

New Delhi , May 1

The Designated Authority in the Commerce Ministry has recommended the imposition of definitive anti-dumping duty on imported viscose filament yarn originating in or exported from China.

Viscose rayon filament yarn is a regenerated cellulosic yarn, which is produced from natural renewable resources i.e., wood pulp.

The Authority held that the product under consideration in this probe is viscose Rayon Filament Yarn up to 150 deniers (and +- 4 per cent permissible variation thereof) including mono filament yarn of less than 67 decitex also known as viscose filament yarn or VFY, rayon filament yarn, art silk yarn, cellulose yarn or rayon yarn and includes all yarns made of 100 per cent viscose yarns such as dyed yarn, flat yarn, microfilament micro yarn, twisted yarn (with the exclusion of embroidered yarn), doubled/multiple ply yarn, etc of VFY.

The application has been filed by the Association of Man-Made Fibre industry on behalf of NRC Ltd, Kesoram Industries Ltd and Indian Rayon & Industries Ltd.

While the anti-dumping investigations are terminated in the case of Ukraine as imports from that country have been found to be negligible, the subject goods have been exported to India from China below its normal value. The domestic industry has suffered material injury, caused by the dumped imports from China, the Authority held. Accordingly, it recommended imposition of anti-dumping duty on Chinese firm Yibin Grace Co Ltd the difference between $3.91 per kg and the landed value of imports. In the case of Chinese firm Yibin Heist Co Ltd, the anti-dumping duty recommended is the difference between $4.04 per kg and the landed value of imports. For the Chinese firm XinXiang Chemical Fibre Co Ltd and any other exporter from China, the recommended anti-dumping duty is the difference between $4.82 per kg and the landed value of imports, the Authority said.

The Authority has examined the share of dumped imports from the subject country in consumption in India. It found that the share of subject country, which was 6.06 per cent in 2001-02 increased to 14.14 per cent of the demand during the period of investigation (PoI), which is from January 1, 2004 to December 2004. On the other hand, market share of imports from countries other than the subject country declined from 3.04 per cent to 1.71 per cent during the same period. Moreover, the very fact that sales volume increased significantly after 2002-03 to the PoI without increase in the sales value points out "deterioration in the sales turnover of the domestic industry," the Authority said adding that the domestic industry has suffered significant injury by not being able to increase its sales turnover in line with increase in sales volume.

The Authority argued that the potential increase in imports from the subject country remains significant given the fact that consumption of the subject goods in China remains limited as compared to production capacity. Chinese producers are under pressure to restrict the production, which would lead to higher fixed costs. The Chinese producers are also under severe pressure to export more and more so as to keep their cost of production at lower level, the Authority said.

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