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Pakistan imposes duty on Indian fine cotton yarn
Jan '17
A provisional countervailing duty ranging from Rs 26.89 to Rs 55.8 a kilogram has been imposed on Indian fine cotton yarn entering Pakistan. The duty will apply on the import of cotton having 55.5 or more counts originating or imported from India, for a period of four months effective from January 18, 2017, the National Tariff Commission (NTC) said.
The NTC, under ministry of commerce, Government of Pakistan, has opened an investigation in April last year under the Countervailing Duties Act of 2015, on the basis of a complaint filed by the All Pakistan Textile Mills Association (APTMA).
For investigation, three Indian fine cotton yarn (carded or combed) manufacturers were examined for determining subsidies on the basis of the information provided by them and the Indian government. The investigation concluded that subsidised imports had hurt the domestic industry as they suppressed domestic prices.
“Subsidised imports of the investigated product (fine yarn) adversely affected market share, sales, profits and profitability, cash flows, inventories return on investment and ability to raise capital of the domestic industry,” NTC said.
Imports from the three Indian exporters who were investigated by the NTC will attract duty of Rs 26.89, Rs 50.81 and Rs 48.10 per kg, while all other imports of fine cotton yarn will have to pay a duty of Rs 55.8 per kg.
However, fine cotton yarn imported from countries other than India and cotton yarn with less than 55.5 counts would not be subject to the provisional countervailing duty, NTC said. Duty would also not be levied on products that are to be used as inputs in products destined solely for exports. (RKS)

Fibre2Fashion News Desk – India

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