Product description – High Tenacity Polyester Yarn excluding the following
- Yarns of less than 1000 deniers
- Yarns of more than with 6000 deniers
- Twisted yarns
- Coloured yarns
- Adhesive activated yarns with deniers above 1000
- Yarns with HMLS properties
However, pursuant to final findings in anti-circumvention investigation dated 31st March 2023, the duty has been extended to the following:
- Yarns of less than 1000 deniers but more than 840 deniers (with tolerance);
- Yarns of more than 6000 deniers but less than 7000 deniers (with tolerance);
- 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
Supporters – Wellknown Polyesters Limited, Sanathan Textiles Limited and Fairdeal Multifilament Private Limited
Date of Initiation – 30th September 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)
- Extension of anti-dumping duties on imports of IDY were recommended by the Authority vide Notification No. 7/9/2022-DGTR dated 31st March 2022 pursuant to an anti-circumvention investigation.
Key findings –
- Once the Authority has recommended extension of anti-dumping duty on circumvented product, the recommendation for sunset review would also include reference to such product. No separate review is required for the duty recommended pursuant to anti-circumvention investigation.
- The dumping margin for exporters is positive and significant.
- The imports from the subject country have increased, particularly in terms of the imports of circumvented goods.
- The imports are undercutting the prices of the domestic industry, and their market share has increased.
- The domestic industry has not suffered material injury during the period of investigation. However, the remedial effect of the duty has been undermined due to the circumvention practices.
- There is a clear likelihood of dumping and consequent injury in the event of cessation of the anti-dumping duty, evident from significant capacities, surplus inventories, third country dumping, attractiveness of Indian market, and decline in performance of the domestic industry post investigation period.
- The continuation of duty would not be against public interest, since there is no significant participation by users, no response to Economic Interest Questionnaire by users, low impact of duty on downstream products and improved profitability of users.