The National Tariff Commission (NTC) has slapped provisional countervailing duty on the import of Indian fine cotton yarn for four months. The duty, ranging from Rs 26.89 to Rs 55.8 a kg, will apply on the import of cotton having 55.5 or more counts originating or imported from India. The duty will not be levied on imports of the investigated product that are to be used as inputs in products destined solely for exports and are covered under any scheme exempting customs duty for exports under the Customs Act of 1969.
Last year after a complaint lodged by All Pakistan Textile Mills Association (APTMA) on behalf of the domestic industry, the commission opened a countervailing investigation under Section 11 of the Coun¬tervailing Duties Act of 2015 on April 20. The said duty is an import tax imposed on certain goods to prevent dumping or counter export subsidies.
Under the investigation, three Indian producers of fine cotton yarn (carded or combed) were selected for determining subsidies on the basis of the information provided by them and the government of India. The NTC concluded that the subsidised imports had hurt the domestic industry as they suppressed domestic prices.
The three India exporters that were selected for investigation by the NTC were slapped with Rs 26.89, 50.81 and 48.10 per kg provisional amount of countervailing duty, while a duty of Rs 55.8 per kg has been imposed on other Indian exports of fine cotton yarn.