The DGTR of India's Ministry of Commerce has initiated an investigation to review the need for continuation of anti-dumping duty on flax, known as linen yarn, imported from China. In fact, the current charges are due to expire on October 17, 2023. It is important to note that the lea count, which is a unit to measure the length of a yarn, is below 70 for flax yarn imported from China.
The investigation will determine whether anti-dumping duty should be imposed on flax yarn on imports from China and ensure fair trade practices between the two countries. The probe comes following complaints from the domestic industry and an application by Grasim Industries Ltd and Syntex Industries to initiate a sunset review of the anti-dumping duty.
Linen yarn is used to make linen fabric, which is used in apparel and home textiles. The purpose of the duty is to ensure fair trade practices and create a level-playing field for domestic producers in relation to foreign producers and exporters.
As per the DGTR notification, there is prima facie evidence of dumping of the product from China despite the existing anti-dumping duties. Consequently, the DGTR will review the need for continuation of duties and examine whether cessation of existing duties is likely to lead to continuation or recurrence of dumping and impact on the domestic industry.
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