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Textile producers plead duty suspension on yarns
20 May '10
2 min read
US-based textile producers are forcing the policy makers of the country to remove the duty imposition on rayon and acrylic yarns, which are although not manufactured in the country, but are important for them to compete with their foreign counterparts.
Policy makers have failed to renew the import duty that had expired last year. The National Council of Textile Organisations (NCTO) and 74 companies in their letter to the Ways and Means Committee and its Trade Subcommittee, have requested the policy makers to approve the Miscellaneous Trade and Technical Corrections Act as, it would aid in removing the duties on acrylic and rayon yarns.
As per NCTO, the two points mentioned above are of prime concern to the industry, as the cost of acrylic yarn had increased by 50 percent and an additional 6 percent duty on it, posed a threat to the US producers, who could possibly get sidetracked completely. Similar is the situation for goods made from rayon yarns, which have an import duty of 5-10 cents per pound.
According to experts, with the removal of ban on Chinese imports in 2009 and with sudden increase of Chinese-made goods in the market, US industry is under severe market pressure owing to which, they are finding it difficult to pay the complete duty levied on acrylic and rayon yarns.
Experts are of the opinion that, if US firms were forced to pay the duties on imports of acrylic and rayon yarns then most of them will have to exit from the market, as they will turn uncompetitive for product lines that make use of these yarns.
Therefore, it is the need of the hour for the policy makers, to extend the expired policy wherein, import duty levied on these fibres was lifted, so as to help improve US industry fare well while competing in the global market, informed NCTO officials.
Policy makers have failed to renew the import duty that had expired last year. The National Council of Textile Organisations (NCTO) and 74 companies in their letter to the Ways and Means Committee and its Trade Subcommittee, have requested the policy makers to approve the Miscellaneous Trade and Technical Corrections Act as, it would aid in removing the duties on acrylic and rayon yarns.
As per NCTO, the two points mentioned above are of prime concern to the industry, as the cost of acrylic yarn had increased by 50 percent and an additional 6 percent duty on it, posed a threat to the US producers, who could possibly get sidetracked completely. Similar is the situation for goods made from rayon yarns, which have an import duty of 5-10 cents per pound.
According to experts, with the removal of ban on Chinese imports in 2009 and with sudden increase of Chinese-made goods in the market, US industry is under severe market pressure owing to which, they are finding it difficult to pay the complete duty levied on acrylic and rayon yarns.
Experts are of the opinion that, if US firms were forced to pay the duties on imports of acrylic and rayon yarns then most of them will have to exit from the market, as they will turn uncompetitive for product lines that make use of these yarns.
Therefore, it is the need of the hour for the policy makers, to extend the expired policy wherein, import duty levied on these fibres was lifted, so as to help improve US industry fare well while competing in the global market, informed NCTO officials.
Fibre2Fashion News Desk - India
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