NEW DELHI: The government may impose anti-dumping duty on a certain variety of yarn from China, Indonesia, and Vietnam with a view to guard domestic players from cheap imports.
The Commerce Ministry's investigation arm Directorate General of Trade Remedies (DGTR) has initiated a probe into alleged dumping of 'Viscose Spun Yarn' by companies in these three countries following a complaint filed by Indian Manmade Yarn Manufacturers Association on behalf of domestic industry.
The association has filed an application before the directorate for an investigation into the imports from these countries for imposing an anti-dumping duty.
It has alleged that dumped imports from these countries are causing material injury to the domestic industry.
DGTR, in a notification, said that on the basis of the prima facie evidence submitted by the association about dumping of the product by these nations, "the authority, hereby, initiates an investigation".
In the probe, DGTR will determine the existence, degree and effect of any alleged dumping.
If it is established that the dumping has impacted the domestic industry, the directorate would recommend imposition of the duty.
The Finance Ministry will make the final decision on imposing the duty. The period of investigation is April to December 2019. It would also look at 2016-19 data.
Yarn is mainly used for weaving or knitting for production of fabric for eventual use in garments. Countries carry out anti-dumping probe to determine whether their domestic industries have been hurt because of a surge in cheap imports.
As a countermeasure, they impose duties under the multilateral regime of the World Trade Organization.
The duty is aimed at ensuring fair trade practices and creating a level-playing field for domestic producers with regard to foreign producers and exporters.