EU has levied the anti-dumping tax on the polyester cotton made in China, White Russia, South Korea and Saudi Arabia since 2005 and nearly all Chinese manufacturers have been burdened with 49.7 percent tax.
In the past EU levied anti-dumping tax on polyester cotton imported from Taiwan, however, it was cancelled after the re-examination. Export prices of both China and Taiwan were almost similar. Thus, it is likely that EU would eliminate the anti-dumping tax imposed on Chinese polyester cotton, as well.
Besides, the manufacturing cost for the same in EU is around 15 times higher than the cost in China. Along with this, the anti dumping tax is hampering the interests of EU customers. Ever since, EU levied anti dumping tax on Chinese polyester cotton, very less enterprises from the country exported to EU.
This year, EU has decided to investigate the polyester cotton entering the country. It is expected that the nation will cancel the current anti dumping tax, which will be very beneficial for Chinese polyester cotton export. China Textile Committee is happy with such decision and puts great importance to this.
Presently, the US has also levied 4.4 percent anti-dumping tax on Chinese mainland, thus to evade this China planned to move their production lines with a output of 1500 tons of polyester cotton a month to Thailand.
Fibre2fashion News Desk - China