• Investment World
• eWorld
• Catalyst
• Mentor
• Life
• Canvas
• Praxis
• Urban Pulse
• Brand Quest

G. Srinivasan

NEW DELHI, Dec. 25

THE Designated Authority in the Commerce Ministry has recommended the imposition of definitive anti-dumping duty on certain imported polyester staple fibres (PSF) from South Korea, Malaysia, Thailand and Taiwan.

In its final findings announced on Tuesday to be gazetted shortly, the authority held that the subject goods had been exported to India below normal value, resulting in dumping. The Indian industry has suffered material injury and it is considered necessary to impose definitive anti-dumping duty on all imports of the subject goods originating in or exported from these countries.

Accordingly, the anti-dumping duty recommended is the difference between $1.196 per kg and the landed value of imports from South Korea; in the case of Malaysia, it would be the difference between $1.143 per kg and the landed value of imports from Penfibre SDN.BHD.Malaysia and for all other exporters from Malaysia it would be $1.196 and the landed value of imports; in the case of Taiwan, for both Far Eastern Textiles Ltd and all other exporters, the anti-dumping duty is the difference between $1.196 and the landed value of imports.

For Thailand, the authority has rolled out four sets of anti-dumping duty. Thus, in the case of Tuntex (Thailand) Public Co Ltd, it is the difference between $1.131 and the landed value of imports; in the case of Teijin Polyester (Thailand) the anti-dumping duty is the difference between $1.118 and the landed value of imports; for Teijin (Thailand) Ltd, it is the difference between $1.093 and the landed value of imports and for all other exporters from Thailand, the duty is the difference between $1.196 and the landed value of imports.

The period of investigation was from January 1, 2000 to September 30, 2000 and the petitioner was the Association of Synthetic Fibre Industry (ASIF), representing Reliance Industries Ltd, Indo Rama Synthetics Ltd, which together account for 71 per cent of the total domestic production with support from India Polyfibres Ltd, Orissa Polyfibres Ltd and Terene Fibres India (P) Ltd which together account for another 12 per cent of aggregate production.

After rebutting the various charges made by the user/importer industry as also exporters from the four countries, the authority held that the domestic industry had submitted that the data published by leading consultancy firms such as Tecnon and PCI clearly revealed that there was a massive surplus capacity of 14,85,000 tonnes in these four countries. But their growth of consumption was minimal compared to the huge excess capacity and huge excess production they cumulatively possessed. The huge surplus production capacity over consumption and huge actual production over consumption constituted respectively 14,85,000 t and 11,94,000 t per annum. This was 2.65 times and 2.13 times the annualised Indian consumption respectively during the period of investigation.

Thus, the authority held, that "this huge overcapacity is like a hanging sword over the applicant/petitioner Indian industry. It has the capability not only to intimidate/affect the Indian industry materially, but also to obliterate Indian industry in total". Besides, the significant spurt in dumped imports and price undercutting clearly indicated the threat of injury to the domestic industry.

Industry sources told Business Line here that both at the preliminary stage and in the final stage of levy of anti-dumping duty on PSF, efforts were made by user/importer industry to stall the proceedings of the authority. During the course of the public hearing, the representative of Madura Coats and several other representatives of the spinning mills attempted to raise the issues pertaining to the jurisdiction of the Designated Authority as well as the adequacy, accuracy and sufficiency of the application filed by the domestic industry. But the Rajasthan High Court, after hearing all the sides on the various aspects of case, dismissed the writ and upheld the validity of the initiation notification issued on June 25, 2001 as well as of the preliminary findings issued on January 16, 2002 by the authority. Afterwards when the authority made a public disclosure, prior to recommending final and definitive anti-dumping duty, efforts were made by user industry like Madura Coats to stall the final recommendation by seeking a stay. Mr P. Chidamabaram, former Minister of State for Commerce and Union Finance Minister, appeared in the Madras High Court on behalf of Madura Coats but at the intervention of the Additional Solicitor-General of India, Mr V.D. Gopalan, the stay was vacated and the High Court permitted the authority to proceed further in the matter, the sources added.

Send this article to Friends by E-Mail
Comment on this article to BLFeedback@thehindu.co.in

Stories in this Section
KREDL to add 1,500 MW of biomass-based power

Copyright © 2002, The Hindu Business Line. Republication or redissemination of the contents of this screen are expressly prohibited without the written consent of The Hindu Business Line