There should be no anti-dumping duty on viscose staple fiber imported from Indonesia. So says Sima.

The Directorate General of Trade Remedies (DGTR) has recommended an anti-dumping duty on viscose staple fiber imported from Indonesia. The anti-dumping duty gives a protection to the tune of 28 per cent to the indigenous VSF manufacturer. Much of the imported raw material, machinery, etc., attract only five per cent to 7.5 per cent basic customs duty while such an abnormal protection is totally unwarranted and on the contrary would greatly affect the entire VSF value chain.

Rejection of the recommendation to impose the duty would ensure the survival of micro, small and medium spinning mills, the decentralized powerloom and handloom sector and also the garment sector. Over two lakh powerlooms in Tamil Nadu had diverted to viscose staple fiber fabric manufacturing and enabling value added exports. The levy would again make fabric manufacturers switch over to imports that would have a serious impact on spinning mills. In the past various path breaking policy initiatives had been taken to address the raw material structural issues, especially manmade fibers, the future growth engine of the Indian textile industry, by removing the anti-dumping duties levied on various raw materials including PTA and MEG, polyester staple fibers, acrylic fiber and viscose staple fiber.