India may extend anti-dumping duty on polyester fabric used in shoes, bags imported from China

New Delhi: India may continue to levy anti-dumping duty on all Fully Drawn or Fully Oriented Yarn, Spin Drawn Yarn and Flat Yarn (FDY) of polyester imported from China for five years but could put an end to the duty on the product coming from Thailand.
The commerce and industry ministry recommended a duty of $547/MT on FDY, which is used in making shoe upper fabrics, luggage/bag and curtain fabrics, coming from China based on an application filed by the Association of Synthetic Fibre Industry.

“Having concluded that there is likelihood of continuation/ recurrence of dumping and injury if the existing ADD against imports from China are allowed to cease, the authority is of the view that continuation of ADD is required on the imports of the product under consideration from China,” Directorate General of Trade Remedies (DGTR) said in a notification.

“However, continuation of ADD is not recommended on the imports of the product from Thailand,” it said.

While DGTR recommends the levy of such duties, their imposition is decided by the finance ministry.

The finance ministry had last month extended the anti-dumping duty on the import of the product up to November 30, 2020.

The duty was first imposed in 2009 and a sunset review investigation done in 2014 followed by extension of the duty in 2015.

DGTR also said that there is continued dumping of the subject goods and the performance of the domestic industry has improved and it has not suffered injury during the present period.