Brazil has imposed an anti-dumping duty on textured synthetic filament polyester yarn 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.
The duty was calculated by SDCOM (Sub Secretariat of Commercial Defense and Public Interest of the Brazilian Ministry of Economy) Technicians using eight different parameters: cost 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 the VNC of the Indian product is $1,955.63 (per ton – FOB) compared to the actual export price of $1397.06 (per ton – FOB). Therefore, it was concluded that Indian companies were exporting with dumping margin of 40 per cent.
It was further 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 investigated, imports of polyester yarn from India and China grew 110.4 per cent while the domestic producers had grown by 33.2 per cent while the local market had grown 79.9 per cent. It was therefore concluded that during that period, Indian and Chinese market share grew 10.9 per cent while local industries lost 3.9 per cent of market share.