India has initiated anti-circumvention investigation concerning alleged circumvention of anti-dumping duty imposed on imports of high tenacity polyester yarn (HTPY or IDY) originating in or exported from China. Reliance Industries had complained about circumvention and demanded for extension of existing anti-dumping duty (ADD) imposed on HTPY in 2018.
The Director General of Trade Remedies, in a notification issued on July 27, 2022 has said that imported high tenacity polyester yarn (adhesive activated and others) of less than 1000 denier and more than 840 denier, high tenacity from 6000 to 7000 denier imported from China, polyester yarns (Adhesive Activated and others) and Adhesive Activated High Tenacity polyester yarns ranging from 1000 to 1300 denier have been covered under anti-dumping investigation.
India had earlier imposed anti-dumping duty on July 9, 2018 on HTPY originating in or exported from China which is applicable till July 8, 2023. This yarn (HS Code 54022090 of Chapter 54) is used for tyre cord fabric, seat belt, geo grid, geo sling, single cord, coated fabric, conveyor belt, etc.
Reliance has sought to extend the ambit of the existing ADD and include the products under investigation. The company said that cheaper imports from China are causing damage to domestic industries. It is alleged that anti-dumping duty imposed on the goods are being circumvented by way of changes in the description, name or composition. Chinese suppliers have been evading ADD by changing the product name or composition. The import of converted products into the country increased sharply only after the duty was imposed in 2018.