KARACHI: The National Tariff Commission (NTC) has imposed variable counter regulatory duty on import of fine yarn from India, which was previously subsidised.
The commission, in a notification on Wednesday, imposed a provisional counter duty that varies from Rs26.89 to Rs55.50 per kilogram on import of fine yarn from different exporters of India.
The NTC took this action at the behest of the All Pakistan Textile Mills Association (APTMA) that put the case on behalf of domestic industry of cotton yarn carded or combed of 55.5 and above counts (fine cotton yarn).
It is used by weaving mills for the production of cotton fabrics. The decision was taken after investigations on the subsidy, which injured the local industry from July 1, 2014 to June 30, 2015 and July 1, 2012 to June 30, 2015, respectively.
Some importers of Indian fine yarn enjoyed subsidy of up to 10 percent in different duties. The commission imposed the countervailing duties on subsidised imports of fine yarn originating in and/or exported from India for a period of four months effective from January 18, 2017.
“Subsidised imports of the investigated product (fine yarn) adversely affected market share, sales, profits and profitability, cash flows, inventories return on investment and ability to raise capital of the domestic industry,” said the commission.
Fine cotton yarn imported from other sources (other than India) and coarse counts of cotton yarn (less than 55.5 counts) imported from all sources would not be subject to the provisional countervailing duty, said the notification.
However, such provisional duty would not be levied on imports of the investigated product that were to be used as inputs in products destined solely for exports and were covered under any scheme exempting customs duty for exports
Source: Thenews.com.pk
