DGTR India recommends levying ADD on VSF imports from Indonesia again

22 Dec '22

2 min read

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India’s Directorate General of Trade Remedies (DGTR) has recommended the levy of anti-dumping duty (ADD) on viscose staple fibre (VSF) imported from Indonesia. Industry has opposed the recommendation and appealed to the government to not accept the findings. However, trade data shows imports of VSF have risen sharply after the removal of ADD in July 2021.

The DGTR has recommended levying $0.512 per kg as anti-dumping duty in a notification dated December 19. In August 2021, ADD on imports of VSF was withdrawn on the recommendation of DGTR.

Meanwhile, the Southern India Mills’ Association (SIMA) has urged the central government to reject the recommendation. Ravi Sam, chairman of SIMA termed the recommendation as unrealistic. He emphasised on the survival of MSME spinning mills, decentralised power loom and handloom sector, and the garment sector.

Data shows that imports of VSF from Indonesia increased rapidly post expiry of duty in August 2021. VSF (HS code 550410) imports from Indonesia were at $4.150 million (2.146 million kg) in Q3 2021 when ADD was withdrawn. The imports jumped to $10.207 million (5.135 million kg) in Q4 2021. The inbound shipment peaked in Q3 2022 to reach $29.211 million (13.437 million kg). It was noted at $14.710 million (6.804 million kg) in Q2 2022 and $8.842 million (4.277 million kg) in Q1 2022, according to data obtained from Fibre2Fashion’s market insight tool TexPro.

The imports reached $52.764 million (24.518 million kg) in January-September 2022, which was higher than the imports of last year when it was recorded at $33.349 million (18.382 million kg).

Fibre2Fashion News Desk (KUL)

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