Ref : MR/Min/966

16th October, 2014

Mr. Parveen Jargar

Under Secretary
Ministry of Textiles
Udyog Bhavan
New Delhi
Dear Sir
Sub : Comments on Paper Clipping in Business Line Delhi Edition dated
04.10.2014 regarding Chinese Synthetic Textile reg.
Please refer to letter No. F.No. 12015/08/2014-IT dated 15 th October, 2014 on
the above subject.
As desired, the comments of the Council regarding the above issue is given
below:
As mentioned in the news clipping the article on imposition of Anti-dumping
duty on import of Purified Terephatalic Acid (PTA) by India. It may be informed
that since PTA is a basic raw material for Polyester; imposition of Anti-dumping
duty on import of PTA into India is likely to further increase prices of Polyester
and Polyester blended fibres.
In India, costs of MMF textiles raw materials are already higher as compared to
International prices. The existing Basic Customs Duty (BCD) on import of fibre
(man-made), which is the basic raw material for textiles into India, is only 10%,
whereas China imposes 18% on imports of these fibre from India. Because of
high costs of raw materials, fixed based on import parity prices, Indian ManMade fibre textile Industry is unable to compete with its Asian peers, like
China, Taiwan, Indonesia, etc. This high duty on Man-made fibres is adversely
impacting the growth of this industry both in production and exports.
We would like to bring to your kind notice that huge quantities of MMF fabrics
falling under Chapter 54 to 60 are being imported into India from China.
The total imports of MMF Fabrics imported from China in 2013-14 amounted
to US$535.27 Mn, out of which 82% import were against the tariff lines, where
there is no specific Duty. The Main MMF fabrics were imported from China
during 2012-13 against tariff lines with no specific duty. The top ten of these

MMF Fabrics (without specific duties) imported from China accounted for 68%
of the total MMF fabrics imported into India from China, which are as given
below:

Sl.
HS Code Product Description
No.
1 60063200 OTHR KNITD OR CROCHETD
FBRCS OF SYN FIBRS, DYED
2 60053200 WARP KNIT FBRCS OF SYN
FIBRES, DYED
3 59021010 TYRE CORD FBRC OF
NYLON/OTHR POLYAMIDES
IMPREGNTD WTH RUBR
4 59021090 TYRE CORD FABRICS
OTHERS
5 60053100 WARP KNIT FBRCS OF SYN
FIBRES, UNBLCHD OR
BLCHD
6 60064200 OTHR KNITD OR CROCHETD
FBRCS OF ARTIFCL FIBRES ,
DYED
7 59022090 TYRE CORD FABRIC OF
POLYESTER OTHERS
8 60049000 OTHR FBRCS OF
WIDTH>30CM
9 59070012 TXTL FBRCS COVRD WTH
TXTL FLOCKS PN BASE
FBRCS OF MN-MD TXTL
MATRL
10 59119090 TEXTILE FABRICS AND
FELTS OTHERS
Total

201213
77.59

2013- %Grw/Dec
14
69.46
-10.48

35.97

51.62

43.53

48.76

51.03

4.65

56.3

50.73

-9.89

66.39

45.85

-30.94

34.85

41.6

19.37

15.12

20.09

32.84

5.16

12.59

143.85

10.53

11.13

5.77

9.59

9.37

-2.28

360.26

363.47

0.89

Source : DGCI&S
Therefore, the Council is of the opinion that the Basic Customs Duties (BCD)
on imports of MMF fabrics into India may also be increased to not less than
18%. Besides, protecting the domestic MMF textile industry, both imposition of
Specific Duties and the increase of BCD will substantially help in increasing
Indias revenue generation.

We would like to request you to take up the above matter suitably with the
Ministry of Finance.
Thanking you,
Yours sincerely

V. ANIL KUMAR
EXECUTIVE DIRECTOR

April to September 2014

540246
POY
APRIL 14
0
MAY 14
1
JUNE 14
11
JULY14
118
AUG 14
890
SEPT 14
1338

540233
DTY
2256
1752
1122
2062
1930
1800

540247
FDY
806
1487
1524
1940
2017
1860

550320
PSF
2798
3662
5339
8316
8469
9980

Total
5860
6902
7996
12436
13306
14978

From the above table, it can be noted that the imports of polyester Staple Fibre (category:
550320) has been witnessing a constant increase from April 2014, without any let or hindrance,
while the imports of Polyester-oriented Yarn, DTY and FDY into India have declined only
marginally in September 2014. But still, this is a matter of huge concern, as the Indian domestic
synthetic textile industry is being affected by the imports from China.
Now, considering the mass production levels in China, it is possible and easy for China to
offload its production on the importing countries with alarming speed and efficiency, with the
lowest possible cost. Indian manufacturers have not yet achieved the highly desirable levels of
mass- and low-cost production, which is advrsely affecting he growth of the Indian synthetic
textile industry.
Hence, till such time as the Indian industry is able to rise above the seeming paradoxes and
compete equally with the large-scale producers like China, which have the advantages of lowcost large production, it needs to be supported by the Governmental measures like the imposition
of higher import tariffs, which could curtail and preferably halt the surging imports of cheap
Chinese-manufactured synthetic textiles into India. Hence, the Council is of the opinion that
there is an urgent need for the Government to come to the rescue of the Indian MMF textile
industry by enhancing the Basic Customs Duties (BCD) on imports of MMF fabrics into India to
not less than 18%. Further, apart from protecting the domestic MMF textile industry, the

imposition of Specific Duties and the increase of BCD will substantially help in increasing
Indias revenue generation.