The government of India has decided to continue anti-dumping duty of up to $4.82 per kg on Viscose Filament Yarn till February, 2012 to protect the domestic industry.

The anti-dumping duty on viscose filament yarn, used for home furnishing items, originating from China, was initially imposed in 2006.

"This notification shall remain in force up to and inclusive of the February 24, 2012, unless the notification is revoked earlier," the Department of Revenue said in a notification.

Viscose filament yarn is used in linings of clothes, quilt-cover, cotton spinning, knitting and weaving, silk satin and thread making.

The decision comes following a review carried out by the government on the issue of continuation of the duty on the product. The Commerce ministry has recommended continuation of the anti-dumping duty.

Anti-dumping duty on the product was originally imposed after it was found that goods have been exported to India from China below its normal value. It was found that the domestic industry has suffered material injury.

Investigations had also been conducted on imports of viscose filament yarn from Ukraine but it was found that the quantity coming from the East European country was negligible.

Anti-dumping duty is recommended by the Commerce Ministry, while the Finance Ministry imposes the same.

Unlike safeguard duties, which are levied in a uniform way, anti-dumping duties vary from product to product and from country to country.

Countries initiate anti-dumping probes to check if domestic industry has been hurt because of a surge in cheap imports. As a counter-measure, they impose duties under the multilateral WTO regime.