Spandex yarn is used in the manufacturing of hosiery, swimsuits, and diapers.

The India Directorate General of Anti-Dumping and Allied Duties started the investigation into the imports after a complaint was lodged by Indorama Industries seeking the imposition of anti-dumping duties on the alleged shipments into India, per a Directorate report.

Previously in this case, the Directorate ruled that the plaintiff had met its burden in showing that sufficient prima facie evidence exists that dumping of product originating from China, the ROK, Taiwan and Vietnam had occurred, allowing the probe to move forward.

The Directorate hereby initiates an investigation into the alleged dumping, and consequent injury to the domestic industry, the ruling read, allowing it to determine the existence, degree and effect of alleged dumping and recommend the amount of anti-dumping duty, which if levied, would be adequate to remove the 'injury' to the domestic industry.

Spandex or more technically 'elastomeric filament yarn' is mainly used to make garments that require great comfort and fit. It finds applications in manufacturing of hosiery, swimsuits, aerobic or exercise wear, ski pants, golf jackets, disposable diaper and waist bands, among other products.

Countries, such as India in this case, can initiate an anti-dumping probe to determine whether their domestic industries have been hurt because of surge in cheap imports of any product based on the filing of a petition by actors in the industry.

As a counter measure, they are authorized to impose anti-dumping duties as permitted by the World Trade Organization.