DGTR orders anti-dumping probe on polyester yarn, Pg15

Key Highlights:

• The Directorate General of Trade Remedies (DGTR) initiated an anti-dumping probe on Polyester Textured Yarn (PTY) from China.
• Reliance Industries Ltd and Wellknown Polyester Ltd filed the application for the probe, claiming injury to the domestic industry.
• Downstream industry representatives fear increased costs due to the anti-dumping duty, negating the benefits of Quality Control Order (QCO) rollback.
• The DGTR noted increased import volumes from China, suppressing prices for domestic manufacturers.

Detailed Insights:

• The anti-dumping probe was launched shortly after the government rolled back Quality Control Orders (QCOs) to reduce stress on the textile manufacturing value chain.
• China is the largest manufacturer and exporter of Polyester Textured Yarn (PTY) globally, making its trade practices significant for other nations.
• Imposition of anti-dumping duty could impact the competitiveness of Indian downstream industries that rely on PTY as an input material.
• The investigation aims to determine if PTY imports from China are being dumped, causing material injury to the domestic industry, and warranting imposition of anti-dumping duties.

Key Concepts Involved:

• Anti-dumping Duty: A protectionist tariff imposed by a domestic government on foreign imports that are priced below fair market value.
• Directorate General of Trade Remedies (DGTR): The arm of the Commerce Ministry in India that investigates and recommends trade remedies like anti-dumping duties.
• Quality Control Orders (QCOs): Mandatory standards enforced by the government to ensure product quality and safety, impacting manufacturing and trade.