Definitive anti-dumping duty imposed on ‘flax fabric’ imports from China, Hong Kong

KR Srivats New Delhi | Updated on November 11, 2020

Anti-dumping duty to be continued on carbon black from China, Russia till Dec 31

The Finance Ministry has imposed definitive anti-dumping duty on imports of “woven fabric (having more than 50 per cent flax content)” — commonly known as “flax fabric” —from China and Hong Kong.

The petition seeking levy of anti-dumping duty under Sunset Review of Anti-dumping investigations was filed by Grasim Industries — Jayashree Textiles.

Based on the recommendations of the Designated Authority in the Sunset Review investigations, the revenue department has imposed definitive anti-dumping duty of $2.36 per metre on flax fabric imports from China. In the case of flax fabric imports from Hong Kong, an anti-dumping duty of $1.14 has been imposed. The anti-dumping duty imposed will be valid for five years, according to revenue department.

Flax fabric is highly absorbent, heat regulating, anti allergic, anti static, anti bacterial and UV protective fabric. It is comfortable and nice to wear in any season. This linen yarn is used as grey or dyed as required for weaving. After weaving, it is processed and finished and sold in the market.

Carbon black

The revenue department has now extended the validity of existing anti-dumping duty on ‘carbon black used in rubber applications’ imports from China and Russia till December 31.

Reacting to the government move, VTChandrasekharan, President - All India Rubber Industries Association (AIRIA), said that inputs like carbon black are indispensable and fundamental ingredients for the rubber goods industry for various applications. All these may have a compounding effect on the smaller players in the rubber goods industry and put many units in peril, he said.

The continuation of anti-dumping duty is coming at a time when there is tremendous shortage of carbon black supply for the non tyre rubber product manufacturing industry,

The Non-tyre rubber industry is highly vulnerable to supply disruptions and a fair pricing of these essential raw materials is key to the growth for the industry. Protectionism in the form of tariff and other trade barriers consistently benefits one sector to the detriment of other. The extension of anti-dumping on carbon black only favours few domestic producers whereas the existence of countless manufacturing units of the rubber products are at stake, he said.

This government move to continue anti dumping duty on carbon black stands in no favour of the domestic players as far as the Indian rubber goods industry is concerned. Rather, it will have a cascading effect on the MSME players of the sector, he added.

Published on November 11, 2020

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