The investigation follows a request by Grasim Industries Limited – Jaya Shree Textiles, representing the domestic industry. The company has provided prima facie evidence suggesting that the removal of duties could lead to the recurrence of dumping and injury to Indian producers.
India first imposed anti-dumping duties on flax fabric imports from China and Hong Kong in 2009, following findings of significant dumping and injury. These duties were extended through two previous sunset reviews in 2015 and 2020. The current review is the third such investigation, aiming to determine whether the expiry of the existing duty could result in continued or renewed dumping and damage to the domestic sector, the DGTR said in a notification.
The preliminary findings of the sunset review investigation reveal several critical issues. Firstly, dumping of woven flax fabric continues, with positive and significant dumping margins observed for both China and Hong Kong. The domestic industry has suffered financial losses, attributed to increased import volumes, persistent price undercutting, and price suppression, which have hindered the industry's ability to recover costs and secure reasonable returns.
It has also been established that the imported and domestically produced goods are technically and commercially substitutable, qualifying them as 'like articles' under the anti-dumping rules. Additionally, China is being treated as a non-market economy, and the normal value of the products has been constructed based on the domestic producer’s costs and reasonable profit margins.
The review will assess imports between October 2023 and September 2024, with injury trends analysed from April 2021 to March 2024.
ALCHEMPro News Desk (KD)
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