Govt starts probe into dumping of spandex yarn by China, others

India has started a probe into the alleged dumping of spandex yarn — used in the manufacturing of hosiery, swimsuits, and diapers — from China and three other countries.

The Directorate General of Anti-Dumping and Allied Duties (DGAD) has initiated the investigation in the imports after Indorama Industries sought imposition of anti-dumping duty on the alleged cheap shipments.

In a notification, the DGAD said prima facie sufficient evidence of dumping of the product originating or exported from China, South Korea, Taiwan and Vietnam exists to justify initiation of the anti-dumping investigation.

"...The Authority (DGAD) hereby initiates an investigation into the alleged dumping, and consequent injury to the domestic industry... To determine the existence, degree and effect of alleged dumping and to recommend the amount of anti-dumping duty, which if levied, would be adequate to remove the 'injury' to the domestic industry," it said.

'Elastomeric Filament Yarn' is commonly referred to as Spandex or Elastane. In common parlance, these yarns are also referred to as 'Lycra' in the market even though it is a specific brand name.

Spandex yarn is mainly used to make garments that require great comfort and fit. It find applications in manufacturing of hosiery, swimsuits, aerobic or exercise wear, ski pants, golf jackets, disposable diaper and waist bands, among others.

Countries initiate an anti-dumping probe to determine whether their domestic industries have been hurt because of surge in cheap import of any product. As a counter measure, they impose duties under the multilateral regime of the WTO.

The duty is aimed at ensuring fair trading practices and creating a level-playing field for domestic producers vis-a-vis foreign producers and exporters resorting to dumping of goods at below-cost rates.