DGTR reviews need to continue anti-dumping duty on Chinese flax yarn

The commerce ministry's investigation arm DGTR has initiated a probe to review the need to continue the anti-dumping duty on flax yarn imported from China, following complaints from the domestic industry.

Grasim Industries Ltd and Sintex Industries have filed an application before the Directorate General of Trade Remedies (DGTR) for initiation of the sunset review of the anti-dumping duty imposed on imports of 'flax yarn of below 70 lea count' exported from China to India.

Lea is a unit for measuring the length of yarn. Normally it is taken as 80 yards for wool, 120 yards for cotton and silk, and 300 yards for linen.

Flax yarn is used to make flax fabrics, which is used in apparel and home textiles.

DGTR in a notification has said prima facie there is an evidence of dumping of the product from China in spite of the existing anti-dumping duties.

On the basis of the duly substantiated application of the applicants and "having satisfied itself, on the basis of the prima facie evidence submitted by the domestic industry...the authority, hereby, initiates a sunset review investigation," the notification said.

DGTR would review the need to continue the duties and examine whether the expiry of existing duties is likely to lead to continuation or recurrence of dumping and impact the domestic industry.

The existing duties are set to expire on October 17, 2023.

The duty is aimed at ensuring fair trade practices and creating a level-playing field for domestic producers with regard to foreign producers and exporters.