China may postpone verdict on dumping charge against Taiwan's nylon makers to Oct.

Taipei, Feb. 24, 2005 (CENS)--The Ministry of Commerce (MOC) of mainland China is reportedly to postpone its final verdict on the dumping charge against Taiwan's makers of nylon 6, nylon 66 filament and textured yarns from the original schedule of the end of April to the end of October this year.

In August of 2004, the MOC initially imposed different anti-dumping tariff rates on Taiwan's producers of the above-mentioned textile products. The manufacturers facing such tariff rates of 5%-7% included Formosa Chemical & Fiber Corp., DuPont Far East, Hualong Corp., Zig Sheng Industrial Co., and Chain Yarn Co.

Acelon Chemicals & Fiber Corp. was imposed a punitive tariff of 13% and Li Peng Enterprise Co. 16%. Those Taiwanese makers that defied MOC's decision were levied even higher tax rate of up to 29%. However, Chung Shing Textile Co. was the only Taiwan's textile manufacturer exempt from such a tariff.

The statistics compiled by the textile industry here showed that Taiwan's exports of nylon filament & textured yarns, mainly to mainland China, amount to 12,000 tons per month. Frustrated by the dumping charge from mainland makers, Taiwanese textile makers will not rule out withdrawing from the market if the situation worsens further.

The demand for nylon filament in the mainland is still growing. If the rising demand continues there, then it may ironically offer business chances for Taiwan's nylon filament producers since the prices of the products in the market there will be hiked. As a result, the prices of down-stream products such as cloths and garments will chalk up as well.

Some Taiwanese nylon filament makers complained that imposing the anti-dumping tax on only Taiwan's manufacturers was unfair as in some anti-dumping lawsuits in the past, it was found that quite a lot of products turned out by makers in Southeast Asia were disguised as Taiwan-made ones and quoted at lower prices.

Insiders disclosed that some of Taiwan's nylon manufacturers levied high anti-dumping tax rates might channel their exports to clients in the mainland through trading firms in Hong Kong. A few of them originally planning to set up nylon plants in Taiwan seemed to have decided to relocate their plants in Thailand.

Taiwan's nylon makers are quite concerned about the upcoming ruling by MOC and are trying hard to figure out measures to deal with the aftermath of the verdict.