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Turkey to slap anti-dumping duty on Reliance, Indo-Rama 

Sabarinath M  
Mumbai, May 12: The government of Turkey has decided to impose final anti-dumping duties ranging from 7.9 per cent to 20.3 per cent on polyester texurised yarn (PTY) imports from Indian companies including Reliance Industries Ltd (RIL), Indo Rama Synthetics and Welspun. The duties will be for five years.

The proposed duties come in the wake of an year-long investigation following a petition filed by Susev-the apex body of Turkish polyester manufacturers - alleging dumping of PTY imports from India, Korea, Taiwan and Thailand. The Turkish government has already informed the concerned authorities in India that anti-dumping duties will be imposed shortly. Total PTY exports from India to Turkey is estimated at around 7,500 tonnes.

RIL is the largest PTY exporter in India. PTY exports accounts for around 35 per cent of the company's total exports.

Industry observers said the Turkish producers have alleged that Indian players are importing the product at $1.69 per kg, lower than the domestic price of $1.79 per kg. The investigations, started by the Turkish government in March 1998, was restricted to the imports orginating from India between March and April 1998.

Indian companies, while participating in the investigation process, have refuted the allegations saying the investigations were not "compliant" with the World Trade Organisation (WTO) provisions. While the base period for all other countries was eight months starting from March 1998, investigations related to India were confined to two months.

Moreover, the prices in Mumbai market was used for the investigation which have a high excise component. The investigations should have been carried out for a full year using the ex-factory prices, sources said.

Indian companies have successfully resisted the efforts by European Commission (EC) to impose anti-dumping duties on PTY imports last year. After investigating the matter for a year, the EC had decided not to impose duties. However, the EC has started probe into imports of polyester staple fibre (PSF) from India after complaints from some leading European producers.India has of late been taking the anti-dumping route to protect the interest of the domestic industry. The designated authority, set up in the commerce ministry, has recently imposed provisional anti-dumping duties amounting to Rs 521 per tonne from PTA imports from Spain.

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