Final Findings issued in anti-circumvention investigation concerning circumvention of anti-dumping duty imposed on imports of High Tenacity Polyester Yarn originating in or exported from China PR (31.03.2023)

Product description (product subject to duty) – High Tenacity Polyester Yarn excluding the following

  1. Yarns of less than 1000 deniers
  2. Yarns of more than with 6000 deniers
  3. Twisted yarns
  4. Coloured yarns
  5. Adhesive activated yarns with deniers above 1000
  6. Yarns with HMLS properties

Product description (circumvented product) – High Tenacity Polyester Yarn of the following types

  1. Yarns of less than 1000 deniers but more than 840 deniers (with tolerance);
  2. Yarns of more than 6000 deniers but less than 7000 deniers (with tolerance);
  3. Adhesive Activated yarn of more than 1000 deniers but less than 1300 deniers (with tolerance)

HS Codes – 5402 20 90

Uses – High tenacity polyester yarn is used to manufacture tyre cord fabric, seat belt webbing, geo grid, geo slings, ropes, single cord, coated fabric, conveyer belt fabric, rubberized hose, fire hose, automatic hose etc

Country involved – China PR

Applicant – Reliance Industries Limited

Supporter – Wellknown Polyesters Limited

Date of Initiation – 27th July 2022

Period of Investigation – 1st April 2021 to 31st March 2022

Injury Period – 2018-19, 2019-20, 2020-21 and 2021-22

Past investigations involving the product – Anti-dumping duties on imports of IDY from China were recommended by the Authority vide Notification No. 6/12/2017-DGAD dated 24th May 2018. These were levied by the Ministry of Finance on 9th July 2018 vide Notification No. 35/2018 – Customs (ADD)

Key findings –

  1. There has been a change in pattern of trade for which there is insufficient cause or economic justification. Prior to the imposition of duties, there were no imports of circumvented goods. However, once the duty was imposed in 2018, such imports have increased. There is a significant volume of imports of circumvented goods from China PR during the period of investigation.
  2. The producers/exporters that were exempted from the duty in the original investigation are not exporting the circumventing product.
  3. The imports of circumvented goods have entered the Indian market from China alone.
  4. The exporters from China PR are exporting the product by way of alteration in the description, name or composition of the subject goods.
  5. The imports of circumvented goods have entered India at dumped prices, in relation to the normal value of the original investigation.
  6. The impots of circumvented goods have undermined the remedial effects of existing anti-dumping measures imposed on the subject goods, as evident from price undercutting, decline in market share of the domestic industry, and erosion of the efficacy of anti-dumping duty.
  7. Exclusion of certain goods in the original investigation, when such goods were not being imported, does not prevent their inclusion in the anti-circumvention investigation.