India has initiated a probe into alleged dumping of nylon filament yarn from the European Union and Vietnam following complaints from five domestic firms including Gujarat State Fertilizers and Chemicals.

India has initiated a probe into alleged dumping of nylon filament yarn from the European Union and Vietnam following complaints from five domestic firms including Gujarat State Fertilizers and Chemicals. According to a notification, the Directorate General of Antidumping and Allied Duties (DGAD) has found “sufficient prima facie evidence” of dumping of the product from these countries. Five domestic firms including JCT Ltd, Gujarat Polyfilms Pvt Ltd and AYM Syntex have filed an application for initiation of the anti dumping investigations. “The authority hereby initiates an investigation into the alleged dumping, and consequent injury to the domestic industry to determine the existence, degree and effect of any alleged dumping and to recommend the amount of antidumping duty, which if levied, would be adequate to remove the injury to the domestic industry,” the DGAD’s notification has said.

The major end uses of this yarn are in home furnishing and industrial application such as curtains, sewing and embroidery thread and fishnets. If established that dumping has caused material injury to domestic players, the DGAD would recommend imposition of the dumping duty on the yarn. Anti-dumping duties are levied to provide a level playing field to local industry by guarding against below-cost import. The period of investigation covers October 2015 and March 2017. However, for the purpose of injury investigation, the period will also cover the data of 2012-16.

Imposition of anti-dumping duty is permissible under the World Trade Organization (WTO) regime. Both India and China are members of the Geneva-based body. The duty is aimed at ensuring fair trading practices and creating a level-playing field for domestic producers vis-a- vis foreign producers and exporters. They are not a measure to restrict import or cause an unjustified increase in cost of products.