Ref: MR/CIR/ 2022-23/0043 27 June 2022
TO: THE MEMBERS OF THE COUNCIL
Sub: Anti-Dumping Duty imposed by Brazil on Textured Synthetic Filament yarn of polyesters, including synthetic monofilaments, originating from India and China.
It is to inform that this Council has received a communication from the Trade Defence Wing, DGTR, DoC, Ministry of Commerce and Industry, regarding imposition of Anti-Dumping Duty by Brazil on Textured Synthetic Filament yarn of polyesters (except sewing thread), not put up for retail sale, including synthetic monofilaments with a titer of less than 67 decitex, commonly classified in NCM (Mercosur Common Nomenclature) covered under HS Codes 5402.33.10, 5402.33.20 and 5402.33.90 originating from China and India.
As it is informed, while determining the commercial dumping by the Indian and Chinese exporters, SDCOM (Sub Secretariat of Commercial Defense and Public Interest of the Brazilian Ministry of Economy) Technicians calculated through eight different parameters viz., costs of raw materials, direct labor, energy, production, operation and miscellaneous and profit, what is the “Constructed Normal Value (VNC)” of the product compared to the actual price that the product was being sold for in the Brazilian market, etc.
They concluded that the VNC of the Indian product is of USD 1955.63 (per ton – FOB) compared to the actual export price of USD 1397.06 (per ton – FOB). Therefore, it was concluded that Indian companies were exporting with dumping margin of 40%.
In investigating the impact of the alleged dumping practices to the Brazilian market, it was concluded that the average prices of Polyester yarn from India and China were considerably below those of other importers. It was also noted that in the period that was investigated, Imports of Polyester yarn from India and China grew 110.4% while the domestic producers had grown by 33.2% while the local market had grown 79.9%. It was therefore concluded that during that period, Indian and Chinese market share grew 10.9% while local industries lost 3.9% of market share.
Now, the Brazilian Ministry of Economy has accorded the Indian exporters an opportunity to make comments on the Technical Note (download) by 12th July 2022 post which a final decision shall be made by the concerned body SDCOM.
Members are requested to utilize this opportunity extended by the Brazilian Authority and respond appropriately within the deadline of 12th July 2022 under intimation to the Council.