The investigation arm, under Ministry of Commerce, Directorate General of Trade Remedies (DGTR), has initiated the probe to assess if the subsidy programme of China for exports of ‘Viscose Rayon Filament Yarn (above 60 deniers) is impacting the Indian industry.
The product includes cotton, silk and wool in its feel and texture, used in making woven fabrics, home furnishings, knitting and others. It is also preferred to produce chiffons, georgettes and crepes fabrics.
The investigation will be for the period from April 2019 to March 2020 but will cover the data of 2016-19.
The Indian industry has requested for the imposition of countervailing duty on these imports.
Alleged that material injury to the domestic industry is being caused due to subsidised imports from China, Association of Man-Made Fibre Industry of India (AMFII) has requested for anti-subsidy investigation on the imports of this yarn from China.
As per guidelines of the World Trade Organization (WTO), if a product is subsidised by the Government of its trading partner, a member country is allowed to impose anti-subsidy or countervailing duty.