Policy

Viscose Staple Fibre: DGTR recommends withdrawal of anti-dumping duty on imports from China, Indonesia

Our Bureau New Delhi | Updated on August 02, 2021

On June 30, the revenue department had extended the validity of the duty till October 31this year.

The Directorate General of Trade Remedies (DGTR) in the Commerce Ministry has recommended the withdrawal of the existing anti-dumping duty on certain Viscose Staple Fibre (VSF) from China and Indonesia. This recommendation has to be now implemented by the revenue department in the Finance Ministry.

In its final findings on the sunset review investigations, the DGTR concluded that there is no justification for recommending the continuation of anti-dumping in the present case. The DGTR noted that the domestic industry enjoys a dominant position in the Indian market, and the market share of imports from Indonesia and China is very low. Therefore, the imports cannot be causing any price and volume effect on the domestic industry, the DGTR said.

While there is a likelihood of continuing dumping from these countries, the possibility of recurrence of injury to the domestic industry is not strong enough to warrant the continuation of duties beyond 11 years.

DGTR has therefore recommended withdrawal of definitive anti-dumping duty recommended by it in in July 2016 and enforced by the Finance Ministry in August 2016 for five years. On June 30 this year, the revenue department had extended the validity of this duty till October 31.

It may be recalled that the sunset review investigations were initiated by DGTR in February this year. On behalf of Grasim Industries, the Association of Man-Made Fibre Industry of India had filed the petition seeking initiation of sunset review investigation on certain VSF imports from China and Indonesia.

Meanwhile, Smriti Irani, Minister of Women and Child Development and till recently the Union Textiles Minister, tweeted on Monday: “ Pathbreaking decision by GOI to remove Anti-dumping Duty on Viscose Staple Fibre (VSF). The decision taken after a thorough investigation initiated in February 2021 will give a fillip to the MMF sector. My best wishes to the Textiles industry as a new chapter begins in India’s MMF growth story”.

Published on August 02, 2021

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