The government likely to impose an anti-dumping duty of up to USD 3.44 per kg on import of a particular variety of yarn from four countries – China, South Korea, Taiwan and Vietnam. After the Directorate General of Antidumping and Allied Duties (DGAD), under the commerce ministry concluded the investigations of the dumping.

In DGAD’s final findings concluded that the yarn has been exported to India from these countries below its associated normal value and due to this the domestic industry has suffered material injury. The authority “recommends imposition of definitive anti- dumping duty…so as to remove the injury to the domestic industry, it said in a notification. The recommended duty ranges between USD 3.44 per kg to USD 0.15 per kg.

The move is aimed at guarding domestic industry against cheap imports of elastomeric filament yarn, which is used in the manufacturing of hosiery, swimsuits, aerobic or exercise wear, golf jackets and disposable diaper.

India is one of the largest users of this duty against countries, including China.

Anti-dumping measures are taken to ensure fair trade and provide a level-playing field to the domestic industry. They are not a measure to restrict imports or cause an unjustified increase in cost of products. Unlike the safeguard duty, which is levied in a uniform way, anti-dumping duty varies from company to company and country to country.

Countries initiate anti-dumping probes to determine if the domestic industry has been hurt by a surge in below-cost imports. As a counter-measure, they impose duties under the multilateral WTO regime. While the DGAD recommends the duty, Finance Ministry imposes it.