India launches anti-dumping probe into nylon chip imports from China, Russia

The Directorate General of Trade Remedies (DGTR), the investigation arm of the Commerce Ministry, has initiated an anti-dumping probe into imports of nylon chips and granules from China and Russia, following a complaint by a domestic manufacturer alleging injury to the Indian industry.

The investigation covers imports of Nylon 6 Chips and Granules with relative viscosity below 3, a key raw material used in the textiles sector, among other applications.

According to the DGTR notification, the application has been filed by Gujarat Polyfilms, which has alleged that the product is being exported to India from the two countries at dumped prices, adversely impacting domestic producers in terms of price undercutting, reduced profitability and loss of market share.

“The applicant has claimed that the dumping of Nylon 6 Chips and Granules with relative viscosity below 3 is impacting the domestic industry,” the DGTR said in its notice initiating the probe.

Scope of the investigation

The authority will examine:

• Whether the goods are being dumped into India from China and Russia.

• Whether such imports have caused material injury to the domestic industry.

• Whether there is a causal link between the dumped imports and the alleged injury.

If the allegations are established, the DGTR may recommend the imposition of anti-dumping duty on the imports to the Ministry of Finance, which takes the final decision on levying such duties.

Background

Anti-dumping duties are imposed to ensure fair trade practices and to provide a level playing field to domestic manufacturers when imports are found to be priced below their normal value in the exporting country.

India is among the world’s leading users of trade-remedial measures and frequently resorts to anti-dumping investigations, particularly in sectors such as chemicals, textiles, steel and engineering goods, where domestic producers have raised concerns over low-priced imports from major manufacturing hubs.

The DGTR will now seek responses from importers, exporters and other interested parties, after which it will conduct a detailed examination before submitting its findings within the stipulated timeframe under trade-remedy rules.