India Extends ADD on Flax Fabric Imports from China and Hong Kong [Read Notification]

The Ministry of Finance (Department of Revenue) has issued Notification No. 31/2025-Customs (ADD) dated November 7, 2025, announcing the continuation of the anti-dumping duty on imports of Flax or Linen fabric containing more than 50 percent flax, commonly known as Flax Fabric.

The notification extends this duty for another five years on imports originating in or exported from China PR and Hong Kong, in order to protect Indian manufacturers from unfair trade practices and dumping of low-priced goods.

According to the notification published in the Gazette of India (Extraordinary), the continuation follows a review conducted by the Directorate General of Trade Remedies (DGTR). The DGTR had earlier initiated the review through Notification No. 7/05/2025-DGTR dated March 29, 2025, to assess whether the existing anti-dumping duties imposed in 2020 (via Notification No. 35/2020-Customs (ADD)) should remain in force.

After a detailed investigation, the DGTR concluded that the dumping of Flax Fabric from China and Hong Kong continued despite the existing duties and that Indian producers were still facing significant injury.

The final findings, published by the DGTR on August 8, 2025, argued that the volume of imports had increased both in absolute and relative terms. Even though the cost of raw materials rose, domestic manufacturers could not raise their selling prices proportionately because the landed value of imported goods had fallen further.

Local producers had to suppress prices to remain competitive, leading to financial stress and a loss of market share.

Based on these findings, the Government decided to continue the anti-dumping duties at the rates of USD 2.36 per meter and USD 1.14 per meter, depending on the country of origin and export. The duties will be effective for a period of five years from the date of publication of the notification, unless revoked or amended earlier.

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