Following a request filed by the domestic producer Tecnología Textil S.A., an examination proceeding is initiated into alleged circumvention of the anti-dumping duties imposed by Resolution No. 273-2021/CDB-INDECOPI on imports of taffeta-weave fabrics, made exclusively of polyester staple fibers and cotton (with polyester accounting for more than 50% by weight), in greige, white/bleached, and single-color dyed forms, with a width of up to 1.80 meters and a unit weight between 80 g/m² and 130 g/m², regardless of the declared use, originating in the People’s Republic of China.
The proceeding is based on reasonable indications of circumvention under the modality set forth in item (c) of Article 4 of Law No. 31089, relating to the importation of products with slight modifications in their composition—in this case, the substitution of cotton with viscose rayon—that do not substantially alter their characteristics, end uses, or production process. The company also identified a second circumvention modality under item (f) of Article 4 of the Anti-Circumvention Law, as well as other modalities set forth in items (a) through (e) of Article 4 of the same statute, as imports of blended taffeta-weave fabrics were allegedly made at prices below the average landed price recorded during the original investigation period (January 2017–March 2020), in order to evade payment of the anti-dumping duties.
Accordingly, based on the Commission’s analysis, it indicated that it would be appropriate to initiate an examination proceeding to determine the existence of the alleged circumvention practice, as set forth in item (c) of Article 4 of the Anti-Circumvention Law, at the end of which it must be determined whether the anti-dumping duties imposed by Resolution No. 273-2021/CDB-INDECOPI should be extended to imports of blended taffeta-weave fabrics with a slight modification in their composition (polyester and viscose rayon blend), in accordance with Article 3 of the Anti-Circumvention Law.
On the other hand, the Commission declared the request inadmissible with respect to the modality set forth in item (f) of the aforementioned law, since the importation of Chinese-origin blended taffeta-weave fabrics at prices below the average landed price recorded in the original investigation (i.e., US$ 5.86 per kilogram) does not have the effect of avoiding payment of the anti-dumping duties currently in force, because those duties are applied based on the volume of the imported product and not on its value; therefore, it would not constitute conduct aimed at evading payment under that provision.
Accordingly, through this Resolution, the Commission on Dumping, Subsidies and the Elimination of Non-Tariff Trade Barriers ordered the initiation of an examination proceeding into alleged circumvention of the anti-dumping duties currently in force on imports of blended taffeta-weave fabrics (polyester–cotton) originating in the People’s Republic of China, following a request filed by Tecnología Textil S.A..
To view the full Resolution, please click the link below: https://tinyurl.com/ycyypryd