Government re-imposes anti-dumping duty on Chinese linen fabric

The authorities has re-imposed anti-dumping obligation on linen cloth imported from China and Hong Kong after an elaborate investigation established entry of the material at a worth under its regular worth was hurting the home business, two officers stated.

This is the third time since 2009 the federal government imposed anti-dumping obligation on flax or linen cloth with greater than 50% flax content material that originated from China and Hong Kong, the officers stated requesting anonymity.

The anti-dumping investigation regarding imports of flax or linen cloth from China and Hong Kong was first initiated by the Directorate General of Trade Remedies (DGTR) in October 2008 and based mostly on its suggestions the finance ministry had levied an anti-dumping obligation on the product in December 2009, one of many officers stated. The DGTR was earlier often known as the Directorate General of Anti-dumping and Allied Duties. It is an built-in single-window company for offering complete and swift commerce defence mechanism in India.

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After 5 years, the authority initiated the primary sundown evaluation investigation on this matter and once more advisable the re-imposition of anti-dumping obligation on imports of flax cloth from China and Hong Kong. Based on the findings, the levy was prolonged in August 2015 for an additional five-year interval, the official stated.

After receiving suggestions from the home textile business, the DGTR undertook a second sundown evaluation of the matter in December 2019 and located continuance of dumping of flax or linen cloth from China and Hong Kong. The investigation concluded that the discontinuance of the levy would result in a reoccurrence of dumping and harm the home business. Based on its findings, the finance ministry on Tuesday re-imposed the levy for an additional five-year interval, he stated.

“The anti-dumping duties on flax or linen fabric having flax content of more than 50% are imposed at the rates of $2.36 per meter [for Chinese imports] and $1.14 per meter [for imports from Hong Kong],” he stated.

Divakar Vijayasarathy, founder and managing accomplice at consulting agency DVS Advisors LLP, stated that the current matter is an extension of present anti-dumping obligation to guard the home business from unfair Chinese onslaught. “Without adequate safeguard measures such as anti-dumping duty, the domestic industry would eventually crumble, being unable to compete with the unrealistic prices,” he stated.

“India has always had this issue with China and the unfair dumping as well contributes to furthering the trade deficit. In addition to these measures, the government should facilitate in reducing the cost of domestic production which would enable the domestic industry to compete globally and truly become Aatma Nirbhar [self-reliant],” he added.

Sandeep Agarwal, managing director of Alps Industries Limited and a member of the Trade Promotion Council of India (TPCI), stated the transfer would hamper Indian exports. “We are sourcing linen yarns and fabrics as our raw material for home furnishing products. The anti-dumping duty might create a shortage of linen yarn/fabrics in the short-term. Foreign companies looking to source linen fabrics and garments will start looking for alternatives outside India and might even have to help develop this industry in other countries. Once developed, it will be hard for Indian weavers and garmenters to bring them back,” he stated.