India’s Directorate General of Trade Remedies (DGTR) has announced the initiation of an anti-dumping investigation concerning imports of Viscose Rayon Filament Yarn (VFY) above 75 deniers originating in or exported from China.
The action follows a petition filed by the Association of Man-Made Fibre Industry of India and Grasim Industries Limited, who have alleged that the domestic industry is suffering material injury due to dumped imports from China.
The product under investigation, VFY above 75 deniers (excluding yarn produced through Spool Spun Technology and certain embroidery threads), falls under Chapter 54 of the Customs Tariff Act and is primarily imported under various subheadings of tariff item 5403.
According to the petitioners, the dumped imports from China are being sold in the Indian market at prices significantly below the normal value, resulting in price suppression and serious injury to the domestic industry. The data submitted suggests rising import volumes, increasing inventories, and financial losses including negative returns on capital employed, DGTR said in a notification.
The dumping margin—defined as the difference between the normal value and export price—has been found to be above the de minimis level, indicating the presence of dumping as per Indian trade remedy laws.
The DGTR will examine the period from October 1, 2023, to September 30, 2024, with injury data being reviewed for the past three financial years as well. The domestic industry asserts that VFY produced in India is technically and commercially substitutable with the imported product and should be treated as a ‘like article’ under the Rules.
The investigation aims to determine the existence and extent of dumping, the injury caused to the domestic industry, and whether the imposition of anti-dumping duties is warranted. If the findings support the allegations, duties may be levied to level the playing field for domestic manufacturers.