The Indian government is probing anti dumping allegations against a select Chinese polyester yarn following the complaints from SRF Ltd and Reliance Industries alleging dumping of the yarn and asked for an investigation into the matter.

The investigation will cover the period from April 2016 to March this year. These yarns are used for manufacture of tyre cord fabric, seat belt webbing, slings, ropes, coated fabric and conveyor belt fabric.

The Directorate General of Anti-dumping and Allied Duties (DGAD), under the Commerce Ministry, has “sufficient” evidence of dumping of ‘high tenacity polyester yarn’ from the neighbouring nation.

If established that dumping has caused material injury to domestic players, the DGAD will recommend imposition of anti— dumping duty.

Anti-dumping duties are levied to provide a level playing field to local industry by guarding against cheap, below-cost imports.

The probing authority “hereby initiates an investigation into the alleged dumping, and consequent injury to the domestic industry, he DGAD, under the commerce ministry, said in a notification.

Increasing imports and dumping of goods from China have always been an area of concern for Indian companies. Exports to China were only USD $9 billion in 2015—16, but imports totalled USD 61.7 billion in the fiscal.

Imposition of anti-dumping duty is permissible under the World Trade Organisation regime as both India and China are members of the Geneva-based body.

The DGAD is also probing dumping of several other products such as chemicals from China.