India has started a probe into the alleged dumping of spandex yarn from China, South Korea, Taiwan and Vietnam. The probe will determine the existence, degree and effect of the alleged dumping and recommend the amount of anti-dumping duty which if levied would be adequate to remove any injury to the domestic industry.

Elastomeric filament yarn is commonly referred to as spandex or elastane. In common parlance, these yarns are also referred to as Lycra, even though Lycra is a specific brand name. Spandex yarn is mainly used to make garments that require great comfort and fit. It finds applications in manufacturing of hosiery, swimsuits, aerobic or exercise wear, ski pants, golf jackets, disposable diapers and waist bands, among others.

Countries initiate an anti-dumping probe to determine whether their domestic industries have been hurt because of a surge in cheap imports of any product. As a counter measure, they impose duties under the multilateral regime of the WTO.

The duty is aimed at ensuring fair trading practices and creating a level-playing field for domestic producers vis-a-vis foreign producers and exporters resorting to dumping of goods at below-cost rates. The complaint of dumping was lodged by Indorama Industries.