India initiates anti-dumping investigation on viscose spun yarn

India has initiated an anti-dumping investigation on import of Viscose Rayon Spun Yarn (VYS) originating in or exported from China, Indonesia and Vietnam on January 14.

The investigation is based on a complaint filed by Indian Manmade Yarn Manufacturers Association that dumping of VYS into India is causing material injury to the domestic industry. VSY is mainly used for weaving or knitting for production of fabric for eventual use in garments.

The industry has pointed out that while VYS (which contains 85% or more of artificial viscose staple fibre) has been classified under tariff codes 55101110 and 55101210, identical products are being imported under several other related codes too. These products, "which are being dumped into India, are identical to the goods produced by the domestic industry. There are no known differences either in the technical specifications, quality, functions or end-uses of the dumped imports", the domestic industry points out.  Since the two are technically and commercially substitutable it should be treated as 'like article' under the anti-dumping rules, the complaint says.

Following the complaint, the Directorate General of Trade Remedies (DGTR), under the Commerce Ministry has computed the export price for all three countries based on DGCI&S transaction-wise data. Price adjustments have been made on account of ocean freight, marine insurance, commission, inland freight expenses, port expenses, bank charges, and VAT (only for China). A comparison of the normal value and the export price at ex-factory level has prima facie shown significant dumping margin, the authority notes.

The initiation of an investigation is based on the prima facie findings of the authority. While the period of investigation requested by the domestic industry was 1 April to 31 September 2019, the Authority has decided to look into the import price patterns during a nine month period (from 1 April to 31 December 2019). The injury investigation period will cover the periods 2016-17, 2017-18, 2018-19, and the period of investigation.

As part of the investigation process, DGTR will intimate the known exporters of the product in the three countries, their governments through their embassies in India, the importers and users in India separately. They will be allowed to file their responses within a prescribed time-limit.

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