The Hindu Business Line : Sunset review of dumping duty on nylon tyre cord fabric begins

New Delhi, Sept. 21 The Designated Authority in the Commerce Ministry has initiated sunset review of anti-dumping duty it imposed on imported Nylon Tyre Cord Fabric (NTCF) from China to determine whether the dumping duty is to be continued.

The product under probe is a fabric of nylon, purported largely for tyre cord but also finds application in different kinds of automotives tyres. Nylon tyre cord is produced from caprolactam and caprolactam is processed to obtain nylon chips. The chips are processed further to obtain yarn and the yarn is processed further to obtain produce fabric. NTCF is produced in a host of different deniers and is used for reinforcement of tyres.

Based on preliminary investigation and final probe on the subject goods, the Revenue Department slapped provisional anti-dumping duty on July 26, 2004 and definitive duty on April 27, 2005.

As a review of the extant anti-dumping duty from the date of preliminary duty imposition is due after five years, the Authority has initiated the sunset review in order to determine whether the expiry of the duty is likely to cause continuation or recurrence of dumping and injury to the domestic industry.

However, the domestic industry injured by the dumping, has approached the Authority, pleading for a review of the dumping duty, seeking continuation and enhancement of the anti-dumping duty in force.

The request is based on the grounds that dumping has continued despite the imposition of anti-dumping duty on import of the subject goods from China.

As the authority has satisfied itself on the basis of positive evidence submitted by the domestic industry substantiating the need for a review, the Authority has initiated a review probe. The period of probe for the purpose of the review is from April 1, 2007 to March 31, 2008. However, for the injury examination, the period is from the fiscal years of 2004-05, 2005-06 and 2006-07 and the period of investigation, the Authority noted.

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