Policy

Viscose Staple Fibre: Finmin revokes anti-dumping duty on imports from China, Indonesia

KR Srivats New Delhi | Updated on August 15, 2021

Imports do not cause price and volume effect on domestic industry, sayd DGTR

The Finance Ministry has revoked the definitive anti-dumping duty that was originally imposed in August 2016 on certain Viscose Staple Fibre (VSF) from China and Indonesia. This duty, which was to lapse on August 8, was on June 30 this year extended till October 31, but now removed permanently.

This move comes less than a fortnight after the Directorate General of Trade Remedies (DGTR) in the Commerce Ministry recommended in its final findings on July 31 the withdrawal of existing anti-dumping duty, sources said.

DGTR investigation

In its final findings on the sunset review investigations, the DGTR concluded that there is no justification for recommending 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 do not causeany price and volume effect on the domestic industry, the DGTR said.

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

The sunset review investigations were initiated by the DGTR in February this year. The Association of Man Made Fibre Industry of India had on behalf of Grasim Industries Ltd filed the petition seeking initiation of sunset review investigation on certain VSF imports from China and Indonesia.

Soon after the DGTR made its recommendation, Smriti Irani, Minister of Women and Child Development and till recently the Union Textiles Minister, had tweeted on August 2: “Pathbreaking decision by GOI to remove Anti-dumping Duty on Viscose Staple Fibre (VSF). Decision taken after thorough investigation initiated in February 2021 will give fillip to the MMF sector. My best wishes to the Textiles industry as a new chapter begins in India’s MMF growth story.”

For the investigation, the DGTR covered all types of VSF including grey viscose staple fibre, non-woven fibre, mode also fibre, flame retardant viscose staple fibre, spun dyed viscose staple fibre, tencel viscose staple fibre and the eco-Vero viscose staple fibre and excluded only bamboo fibre.

VSF has silk-like aesthetic with superb drape, soft feel and retains rich brilliant colours. Fabrics made from it are moisture absorbent (even more than cotton), breathable, comfortable to wear and easily dyeable in vivid colours.

Published on August 14, 2021

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