Anti-dumping duties: DGTR takes ‘elastic stand’ on input for spandex fibre production

Responding to demands made by domestic yarn manufacturers for relief from anti-dumping duties on organic compound Dimethylacetamide (DMAC) — an important input for spandex fibre production that goes into stretchable clothing — on imports from China and Turkey, the Directorate General of Trade Remedies has recommended technical specification-based exclusion targeted at the user industry.

“The authority concludes that technical specification-based exclusion of the product under consideration is required to cater to the specific need of spandex fibre producers...The product exclusion will be strictly limited to actual users only, exclusively for actual spandex yarn manufactures when imported for manufacturing…,” as per the final findings of a mid-term review of the anti-dumping duties on DMAC notified by the DGTR this week.

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Mid-term investigation

The government had notified anti-dumping duties ranging from $48 to $211 per MT on DMAC from Turkey and China in February 2018 after it was established that the item was being imported from the two countries below normal value and the domestic industry was suffering material injury due to this.

Following this, Indorama Industries Limited, a manufacturer of textiles, had filed an application before the DGTR for a limited mid-term review investigation concerning exclusion of DMAC of specific grade used in the manufacture of spandex yarn from the anti-dumping duties. It had argued that the domestic producers of DMAC were not in a position to provide the required grade needed for manufacturing spandex yarn. The mid-term investigation was initiated by the DGTR in July 2019.

Final findings

In its final findings, the DGTR observed that despite repeated efforts by the applicant (Indorama) throughout the years (to procure the required item domestically), the domestic producers had not been able to supply the subject goods or even make a positive offer that could meet the specification required.

Evidence on record suggests that the domestic producer(s) do not have the capability to produce DMAC of the grade required for spandex yarn manufacturing, the DGTR observed.

It, therefore, noted that DMAC with technical specifications of minimum purity (99.9 per cent), maximum alkalinity level (0.003 per cent), maximum acidity level (0.005 per cent), maximum iron parts per million (0.05) and maximum water (0.01 per cent) should be excluded from the anti-dumping duties.

A final decision on the matter will be taken by the Ministry of Finance based on the recommendations made by the DGTR, which functions under the Commerce & Industry Ministry.