India May Impose Anti-Dumping Duty On Nylon Filament Yarn Imports

India is considering imposing an anti-dumping duty, of around USD719/tonne for half a decade on the importation of nylon thread from the European Union as well as Vietnam, following recommendations made by the Directorate General of Anti-Dumping and Allied Duties, the investigative arm of the country’s commerce ministry.

The proposed duty is aimed at guarding India’s domestic nylon thread manufacturers from the cheap imports that are coming in from the EU and Vietnam. The probe into the matter was initiated following complaints from five domestic companies, who approached the DGAD, resulting into the probe regarding the alleged dumping of nylon filament yarn from the two aforementioned regions.

According to a notification released by the DGAD, The Authority recommends imposing a definitive anti-dumping duty in order to remove the injuries, as well as to protect, the domestic industry. The suggested duty has not been clarified, but it reportedly ranges between USD 128.06 per tonne to USD 719.44 per tonne. The final word regarding the imposition of the duty will be made by the Finance Ministry.

According to data, importation of this yarn from the two regions jumped up by 13,799 tonnes in the time span covering October 2015-March 2017, which was covered by the investigation, from 2013-2014’s 7,201 tonnes.

It was five domestic companies appealing to the DGAD, including JCT Ltd, Gujarat Polyfilms Pvt Ltd and AYM Syntex, who filed an application for the initiation of investigations into the matter, resulting in the government inquiry.

Nylon filament yarn has several uses in India, and it is primarily used for home furnishing as well as industrial application, like curtains, sewing, as well as embroidery thread and fishnets.

In order for the DGAD to recommend duties, it needs to establish that dumping has cause material injury to the domestic companies. The purpose of levying anti-dumping duties is to provide an even playing field for India’s local industry by protecting it from below-cost imports from other countries and regions.

The World Trade Organization, of which India is a member of, allow for the imposition of anti-dumping duties, with the condition that duties are only for ensuring fair trading practices as well creating an even playing field for both local and foreign markets, not for the restriction of imports or causing an unjustifiable increase in product costs.

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