NITYA | Elastomeric Filament Yarn | Anti-Dumping Duty Review | Trade Law Insight | Issue 2
Recently, Directorate General of Trade Remedies (‘DGTR’) initiated sunset review of anti-dumping duty imposed on import of Elastomeric Filament Yarn or Spandex from China, Korea, Vietnam and Taiwan. The product is widely used in stretch garments to provide stretch with recovery.
Currently, anti-dumping duty imposed on Elastomeric Filament Yarn ranges from USD 0.15/KG to USD 3.34/KG and is valid upto May 2, 2022. DGTR will now undertake review to examine whether anti-dumping duty imposed earlier should be further extended for another five years or not.
The anti-dumping sunset review on the said product is over and above another ongoing anti-dumping investigation initiated on September 3, 2020, concerning the same product imported from Singapore. Final results in that case are still awaited.
An analysis of previous investigation suggests that anti-dumping duty was imposed even though imports were necessitated due to huge demand-supply gap in the domestic market.
However, since the imposition of anti-dumping duty in 2017, market dynamics as well as outlook of Government has changed, especially after COVID-19 pandemic. Now the Government seriously considers the interests of users and importers in India.
It is important for interested parties likely to be affected, to participate in anti-dumping investigations and present complete facts to the DGTR. Otherwise, it is likely that the DGTR will consider one-sided facts presented by the Indian domestic industry and recommend continuation of anti-dumping duty, which will again adversely impact importers and users in India, both in terms of supply and prices.
Interested parties need to register with DGTR and file submissions in prescribed format within 37 days from date of initiation.