DGTR issued Final Findings recommending extension of Anti Dumping Duties in Sunset Review investigation into imports of Nylon Tyre Cord Fabric (NTCF) originating in or exported from China PR on (29.10.2020)

Product description – Nylon Tyre Cord Fabric (NTCF) is a fabric of nylon, meant largely for tyre cord. Nylon Tyre Cord fabric is produced using different deniers of yarn. The product is sold as “Grey fabric” and also “Dipped fabric”. The Indian Tyre Industry is buying both these forms of NTCF. All types of NTCF are within the scope of the product under consideration.

HS Codes – 59021000

Uses – NTCF finds application in different kinds of automotive tyres such as bus & truck tyres, two-wheeler tyres, cycle tyres, light commercial vehicles tyres, animal driven vehicles etc. The fabric is used for reinforcement of tyres.

Countries involved – China PR

Applicants – Association of Synthetic Fibre Industry, on behalf of its members, M/s SRF Ltd. and M/s Century Enka Ltd.

Date of imposition of duty – The current duties are valid till 11th December 2020. The present duty was recommended on 29th October, 2020 and is yet to be imposed by the Ministry of Finance.

Date of initiation – 21st November, 2019

Period of investigation – 1st July 2018 to 30th June 2019 (12 months)

Injury period – April 2016 to March 2017, April 2017 to March 2018 and April 2018 to March 2019 and POI (12 months).

Date of levy of provisional duty (if any, with Customs Notification No.) – N/A

Margins and proposed duty

Producer Dumping Margin Injury Margin Proposed Duty
Range Range (US$/MT)
Haiyang Technology Co. Ltd. 0-20 Negative 520
Hangzhou Dikai Industrial Fabrics Co. Ltd. Negative Negative 520
Huaian Nylon Chemical Fibre Co. Ltd. 0-20 Negative 520
Shenma Industrial Co. Ltd. Negative Negative 520
Junma Tyre Cord Company Limited 0-20 Negative 520

Key findings

  1. The plea for the exclusion of Nylon 66 from the scope of the PUC was rejected since the domestic industry is manufacturing it.
  2. 3 out of the 5 responding producers/exporters that have exported the PUC to India during the POI had been indulged in dumping.
  3. The domestic industry saw a decline in sales, market share, profitability, cash profits and return on investment in the POI.
  4. The Chinese producers saw an increase in unutilised capacities during the injury period.
  5. The Chinese exporters have high export orientation and saw an increase in their inventories in the injury period.
  6. Several exporters were found to sell the PUC to third countries at prices below normal value (i.e., dumped) and injurious (i.e., below NIP of the domestic industry). Considering the high Indian demand, they could be diverted to India.
  7. The Authority considered July 2019-December 2019 as the post-POI for the purpose of likelihood of continuation or recurrence of dumping and injury analysis.
  8. The dumping margin was found to be positive during the post-POI. The performance of the domestic industry also declined significantly during the same period.
  9. Significant volume of imports were found to be at a price below NIP for the domestic industry.
  10. Though there is no injury to the domestic industry during the POI, there is a likelihood of dumping and consequent injury to the domestic industry.
  11. Segregation of imports into dumped and un-dumped, injurious and non-injurious, attractive and non-attractive does not amount to zeroing. It is merely a quantification of sales that is likely to be diverted into India.