Policy makers have failed to renew the import duty that had expired last year.
The National Council of Textile
Organisations (NCTO) and 74 companies in their letter to the Ways and Means
Committee and its Trade Subcommittee, have requested the policy makers to
approve the Miscellaneous Trade and Technical Corrections Act as, it would aid
in removing the duties on acrylic and rayon yarns. .
As per NCTO, the two points mentioned above are of prime concern to the
industry, as the cost of acrylic yarn had increased by 50 percent and an
additional 6 percent duty on it, posed a threat to the US producers, who could
possibly get sidetracked completely. Similar is the situation for goods made
from rayon yarns, which have an import duty of 5-10 cents per pound..
According to experts, with the removal of ban on Chinese imports in 2009 and
with sudden increase of Chinese-made goods in the market, US industry is under
severe market pressure owing to which, they are finding it difficult to pay the
complete duty levied on acrylic and rayon yarns. .
Experts are of the opinion that, if US firms were forced to pay the duties on
imports of acrylic and rayon yarns then most of them will have to exit from the
market, as they will turn uncompetitive for product lines that make use of
these yarns. .
Therefore, it is the need of the hour for the policy makers, to extend the
expired policy wherein, import duty levied on these fibres was lifted, so as to
help improve US industry fare well while competing in the global market,
informed NCTO officials.
Source:The Economic Times