Anti-Dumping Duty on Flax Fabric Import from China, HK

The Ministry of Finance, through Notification No. 31/2025-Customs (ADD) dated 7th November 2025, has imposed anti-dumping duty on imports of woven fabric containing more than 50% flax content (commonly known as flax fabric) originating in or exported from China PR and Hong Kong. The decision follows a review initiated by the Directorate General of Trade Remedies (DGTR) in March 2025 to assess the need for continuing the existing duty imposed in November 2020. The DGTR’s final findings, issued in August 2025, revealed that imports from the subject countries had increased both in absolute and relative terms despite existing duties. It further noted that the domestic industry suffered price suppression as it could not raise selling prices in proportion to rising raw material costs due to declining landed prices of imported goods. Additionally, imports were found to undercut domestic prices, leading to continued dumping and material injury to Indian manufacturers.

Based on these findings, the Central Government has decided to continue the imposition of anti-dumping duties on flax or linen fabric with over 50% flax content under tariff heading 5309. The duty has been fixed at USD 2.36 per meter for imports originating from or exported via China PR, and USD 1.14 per meter for those from or exported via Hong Kong. The notification supersedes the earlier 2020 order and will remain effective for five years from its publication, unless revoked or amended earlier. The duties are payable in Indian currency, calculated at the applicable exchange rate as per the Customs Act, 1962.

MINISTRY OF FINANCE
(Department of Revenue)
NOTIFICATION

 Notification No. 31/2025 -Customs (ADD) | Dated: 7th November, 2025

G.S.R. 827(E).— Whereas, the designated authority, vide notification No. 7/05/2025-DGTR dated the 29^th March, 2025, published in the Gazette of India, Extraordinary, Part I, Section 1, had initiated a review in the matter of continuation of anti-dumping duty on imports of “Woven Fabric (having more than 50% Flax content)” commonly known as “Flax Fabric” (hereinafter referred to as the subject goods) falling under tariff heading 5309 of the First Schedule to the Customs Tariff Act, 1975 (51 of 1975) (hereinafter referred to as the Customs Tariff Act), originating in or exported from China PR and Hong Kong (hereinafter referred to as the subject countries), imposed vide notification of the Government of India, in the Ministry of Finance (Department of Revenue) No. 35/2020 -Customs (ADD), dated the 10^th November, 2020, published in the Gazette of India, Extraordinary, Part II, Section 3, Sub-section (i) vide number G.S.R. 697(E), dated the 10^th November, 2020;

And whereas, in the matter of review of anti-dumping duty on import of the subject goods, originating in or exported from the subject countries, the designated authority in its final findings, published vide notification No. 7/05/2025-DGTR dated the 8^th August 2025, in the Gazette of India Extraordinary, Part I, Section 1, has come to the conclusion that-

(i) The volume of imports from subject countries have increased in both absolute and relative terms, despite existing duties;

(ii) Despite increase cost of raw materials leading to increase in cost, the selling price could not increase proportionately as the landed value of imports declined further. To compete with imported subject goods and maintain market share domestic industry has been constrained from raising its price proportionately, leading to price suppression;

(iii) imports are undercutting the prices of the domestic industry in the market;

(iv) There is continued dumping of subject goods and material injury to the domestic industry despite existing duties,

and has recommended imposition of anti-dumping duty on the subject goods, originating in or exported from the subject countries;

Now, therefore, in exercise of the powers conferred by sub-sections (1) and (5) of section 9A of the Customs Tariff Act, read with rules 18 and 23 of the Customs Tariff (Identification, Assessment and Collection of Anti-dumping Duty on Dumped Articles and for Determination of Injury) Rules, 1995, and in supersession of the notification of the Government of India, in the Ministry of Finance (Department of Revenue) No. 35/2020 -Customs (ADD), dated the 10^th November, 2020, published in the Gazette of India, Extraordinary, Part II, Section 3, Sub-section (i) vide number G.S.R. 697(E), dated the 10^th November, 2020, except as respects things done or omitted to be done before such supersession the Central Government, after considering the aforesaid final findings of the designated authority, hereby imposes on the subject goods, the description of which is specified in column (3) of the Table below, falling under tariff heading of the First Schedule to the Customs Tariff Act as specified in the corresponding entry in column (2), originating in the country as specified in the corresponding entry in column (4), exported from the country as specified in the corresponding entry in column (5), produced by the producers as specified in the corresponding entry in column (6) and exported by the exporters as specified in the corresponding entry in column (7) and imported into India, an anti-dumping duty at the rate equal to the amount as specified in the corresponding entry in column (8), in the currency as specified in the corresponding entry in column (10) and as per unit of measurement as specified in the corresponding entry in column (9) of the said Table, namely:-

TABLE

2. The anti-dumping duty imposed under this notification shall be effective for a period of five years (unless revoked, superseded or amended earlier) from the date of publication of this notification in the Official Gazette and shall be paid in Indian currency.

Explanation.- For the purposes of this notification, rate of exchange applicable for the purposes of calculation of such anti-dumping duty shall be the rate which is specified in the notification of the Government of India, in the Ministry of Finance (Department of Revenue), issued from time to time, in exercise of the powers conferred by section 14 of the Customs Act, 1962 (52 of 1962), and the relevant date for the determination of the rate of exchange shall be the date of presentation of the bill of entry under section 46 of the said Customs Act.

[F. No. CBIC-190356/2/2025-TRU]

DHEERAJ SHARMA, Under Secy.