A sunset review investigation into the ongoing imposition of anti-dumping duties on imports of woven fabric, as part of textile trade, containing more than 50 per cent flax, also referred to as flax fabric, that originates in or is exported from China and Hong Kong has been formally launched by India’s Directorate General of Trade Remedies (DGTR).
Following reports of serious dumping and injury, India initially levied anti-dumping taxes on imports of flax fabric from China and Hong Kong in 2009. Two prior sunset reviews, in 2015 and 2020, extended these duties. According to a notification from the DGTR, the current review is the third such examination and aims to ascertain if the expiration of the current duty could lead to renewed or ongoing dumping and harm to the domestic sector.
Several important difficulties are revealed by the sunset review investigation’s preliminary results. First, woven flax cloth is still being dumped, with both China and Hong Kong showing positive and sizable dumping margins. Increased import quantities, ongoing price undercutting, and price repression have all contributed to the local industry’s financial losses by making it more difficult for the sector to recoup expenses and provide fair returns.
In accordance with the anti-dumping regulations, it has also been determined that the imported and domestically manufactured commodities are technically and commercially interchangeable, making them ‘like articles’. The typical value of the products has also been established based on the expenses and fair profit margins of the home producer, as China is considered a non-market economy.
Injury trends will be examined from April 2021 to March 2024, and imports will be evaluated from October 2023 to September 2024.
