India continues Anti-dumping Duty on Chinese VFY

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India continues Anti-dumping Duty on Chinese VFY

India’s commerce ministry has decided to continue anti-dumping duty on Chinese origin Viscose Filament Yarn imports up to US$ 4.82 per kg on till February, 2012 to protect the domestic industry. The anti-dumping duty on viscose filament yarn originating from China was initially imposed in 2006.

"This notification shall remain in force up to and inclusive of the February 24, 2012, unless the notification is revoked earlier," the Department of Revenue said in a recent notification.

Chinais the world’s largest Viscose Filament Yarn manufacturer and exporter. Viscose filament yarn is used in linings of clothes, suiting fabrics, sewing threads, knitting and weaving of apparel grade fabrics, man-made silk sarees, satin and embroidery thread etc.

The decision came after a review carried out by the designated authority on the issue of continuation of the anti-dumping duty on the product. The Commerce ministry has found that the local industry is being harmed by dumping of China originated goods and hence recommended continuation of the anti-dumping duty.

Anti-dumping duty on the product was originally imposed after it was found that goods have been exported to India from China below its normal value. It was found that the domestic industry has suffered material injury. Investigations had also been conducted on imports of viscose filament yarn from Ukraine but it was found that the quantity coming from the East European country was negligible. Anti-dumping duty is recommended by the Commerce Ministry, while the Finance Ministry imposes the same.