India Moves to Impose Anti-Dumping Duties on Chinese Viscose Rayon Yarn
In a significant trade action, the Directorate General of Trade Remedies (DGTR), operating under the Union commerce ministry, has recommended the imposition of anti-dumping duties on imports of Chinese viscose rayon filament yarn (above 75 deniers). This widely used man-made textile fibre is now subject to proposed duties following a government notification issued on Monday.
Proposed Duty Structure for Chinese Exporters
The recommended duties vary by producer, with specific amounts set for key Chinese companies. Xinxiang Chemical Fibre Co Ltd faces a duty of $386 per metric tonne, while Jilin Chemical Fiber Co. is slated for $667 per metric tonne. For Yibin Hiest Fibre Limited Corporation and related exporters, the duty is proposed at $518 per metric tonne. All other producers from China would be subject to a higher duty of $1,071 per metric tonne, as detailed in the official notification.
Background and Investigation Findings
This recommendation comes shortly after the DGTR initiated an anti-dumping investigation into imports of ethyl chloroformate from China, prompted by a complaint from domestic manufacturer Paushak. The Gujarat-based firm, which claims to be India's largest specialty phosgene-based chemical manufacturer and the sole producer of ethyl chloroformate in the country, alleged that Chinese imports were being sold at unfairly low prices, causing material injury to the local industry.
The DGTR's investigation revealed that dumped imports from China have increased significantly, undercutting domestic prices and harming Indian producers. The preliminary assessment indicated a dumping margin above the de minimis threshold, pointing to substantial price undercutting by Chinese exporters—a critical factor in anti-dumping cases.
Impact and Implications of the Duties
If approved by the Ministry of Finance, these anti-dumping duties on viscose rayon filament yarn will be imposed for a period of five years. This move aims to protect domestic textile producers from unfair competition, but it could also have broader economic effects. Ethyl chloroformate, another chemical under investigation, is an organic intermediate crucial for manufacturing pharmaceuticals and agrochemicals. Any duties on this product might raise input costs for drugmakers and agrochemical firms, even as they safeguard domestic producers.
The investigation period covered from October 2024 to September 2025, ensuring a comprehensive analysis of the trade practices. The DGTR continues to examine whether anti-dumping measures are necessary to offset the alleged injury to India's domestic industry, highlighting the government's commitment to fair trade practices.
