India hikes anti-dumping duty on flax fabrics from China, Hong Kong
By yash chouhan 2025-11-11 15:13:24
India Extends Anti-Dumping Duty on Flax or Linen Fabric Imported from China and Hong Kong
India has extended the anti-dumping duty on flax or linen fabric imported from China and Hong Kong for another five years. This decision follows a sunset review that confirmed continued dumping and injury to domestic producers.
The DGTR found that despite the earlier duties, import volumes have increased and domestic prices have declined.
Imports from China will be charged $2.36 per meter, while imports from Hong Kong will be charged $1.14 per meter.
India has extended the anti-dumping duty (ADD) on flax or linen fabric imported from China and Hong Kong for another five years. The Indian government first imposed these duties on November 10, 2020, for a period of five years. The sunset review concluded that material injury persists due to increased imports. Flax fabric, often considered 'super cotton,' is widely used in premium clothing.
Following the outcome of the Sunset Review investigation, the government has issued a formal notification continuing the ADD on imports of flax fabric from China and Hong Kong. The extension was issued last Friday by the Ministry of Finance, Department of Revenue, through Notification No. 31/2025-Customs (ADD).
The subject goods are defined as woven fabrics with more than 50 percent flax content—commonly referred to as flax or linen fabric—classified under HSN code 5309 of the Customs Tariff Act, 1975.
The Directorate General of Trade Remedies (DGTR) initiated the review on March 29, 2025. In its final findings on August 8, 2025, the authority confirmed continued dumping of these goods from China and Hong Kong, resulting in material injury to the domestic industry. The report cited an increase in import volumes despite existing duties, a decline in domestic price levels due to import reductions, and a decrease in domestic prices, which prevented local manufacturers from bearing the increased cost of raw materials.
Based on these findings, the central government has increased anti-dumping duties on flax fabric imports from identified sources. Flax fabric imported or exported from China will be subject to a duty of $2.36 per meter, while imports originating from Hong Kong will be subject to a duty of $1.14 per meter, regardless of the producer or exporter. This duty is payable in Indian currency, calculated at the exchange rates notified by the Ministry of Finance under Section 14 of the Customs Act, 1962, on the date of filing the bill of entry. The latest notification confirms that this duty will remain in effect for the next five years from the date of publication.
The continuation of the duty is aimed at ensuring fair trade and protecting domestic producers of flax-based fabrics and linen textiles, who are facing persistent price and volume pressure from low-priced imports.
