Fibre imports from 4 nations in anti-dumping duty crosshairs

India may impose anti-dumping duty on imports of a certain kind of fibre from China, Indonesia, Malaysia and Thailand as it has found sufficient evidence of dumping of the product from these countries.
The Directorate General of Anti-dumping and Allied Duties (DGAD), under the commerce ministry, has initiated investigation on the same.
Indo Rama Synthetics (India) Ltd, The Bombay Dyeing & Mfg Co Ltd and Alok Industry Ltd have filed the application for imposition of anti-dumping duty on imports of 'non-dyed Polyester Staple Fibre (PSF) ranging from 0.6 to 6 Deniers', DGAD has said in a notification.
These firms have alleged that the fibres are entering the Indian market at dumped prices and such imports are causing injury to the domestic industry.

DGAD has found "sufficient prima facie evidence of dumping" of the commodity exported from these countries, injury to the domestic industry and "causal link between the alleged dumping and injury to justify initiation of an investigation".
The probe will determine the existence, degree and effect of alleged dumping and after that, DGAD may recommend the quantum of anti-dumping duty, which if levied, will be "adequate" to remove the injury to the domestic industry.

The period of investigation shall be from April 2015 to September 2016 (18 months). However, it will cover data of the previous three years as well -- 2012-15.

DGAD recommends the duty and the Finance Ministry imposes it.
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 multi-lateral WTO regime.
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.