India has extended the anti-dumping duty (ADD) on flax or linen fabric imported from China and Hong Kong for another five years. The Indian government first imposed the duty on November 10, 2020, for a five-year period. The sunset review concluded that material injury persisted due to increased imports. Flax fabric, often considered a ‘super cotton’, is widely used in premium clothing.
The government has formally notified the continuation of ADD on imports of flax fabric from China and Hong Kong, following the outcome of the sunset review investigation. The extension was issued through Notification No. 31/2025-Customs (ADD) by the Ministry of Finance, Department of Revenue, last Friday.
The subject goods are defined as woven fabric containing more than 50 per cent flax content—commonly referred to as flax or linen fabric—classified under HSN code 5309 of the Customs Tariff Act, 1975.
The Directorate General of Trade Remedies (DGTR) initiated the review on March 29, 2025. In its final findings on August 8, 2025, the authority confirmed continued dumping of these goods from China and Hong Kong, resulting in material injury to the domestic industry. The report cited a rise in import volumes despite existing duties, deterioration in domestic price levels due to import undercutting, and suppression of domestic prices, which prevented local manufacturers from passing on increased raw material costs.
Based on these findings, the Central Government has extended the anti-dumping duty on flax fabric imports from the identified sources. Imports originating in or exported from China will attract a duty of $2.36 per metre, while those linked to Hong Kong will face a duty of $1.14 per metre, irrespective of producer or exporter. The duty is payable in Indian currency, calculated as per the exchange rates notified by the Ministry of Finance under Section 14 of the Customs Act, 1962, on the date of filing the bill of entry. The latest notification confirms that the duty will remain in effect for the next five years from its date of publication.
The continuation of the duty aims to ensure fair trade and protect domestic producers of flax-based fabrics and linen textiles, who have faced sustained price and volume pressures from lower-priced imports.
