China scraps anti-dumping duty on Taiwan's nylon filament makers

Taipei, May 5, 2005 (CENS)--The Ministry of Commerce (MOC) of mainland China has decided to scrap anti-dumping tariffs on imports of nylon filament No.6 and No. 66 from Taiwan.

In the fourth quarter of 2003, the MOC, based on an initial verdict, imposed different anti-dumping tariff rates on imports of the Taiwan-made textile products mentioned above, with most makers levied a tariff rate of 5%-16% and those defying MOC's decision subject to a punitive rate of up to 29%. Chung Shing Textile Co. was the only Taiwanese textile maker exempt from such an anti-dumping tax.

Insiders said that MOC levied anti-dumping duty on imports of Taiwan-made nylon filament mainly to protect mainland Chinese makers in the line. The protective measure, however, has fueled a sharp rise in the production of nylon filament in the mainland, ironically demanding more nylon chips imported from Taiwan.

The MOC's final decision to drop anti-dumping tariffs on Taiwan's nylon makers is deemed a big shot to Taiwan's nylon industry now facing a sluggish sales season.

Formosa Chemical & Fiber Corp., Taiwan's leading synthetic fiber maker, is the largest Taiwanese exporter of nylon filament to mainland China, shipping 4,000-5,000 metric tons to the other side of the Taiwan Strait per month. In terms of nylon chips, Li Peng Enterprise Co. is Taiwan's largest supplier to the mainland market, with shipments to China accounting for one third of the firm's total exports of nylon chips.

The monthly output of nylon filament in the mainland expanded to 67,000 metric tons at the end of last year from an earlier average of 45,000 metric tons. This year the production volume is expected to jump to 75,000 metric tons per month. Market observers believed that the soaring output of nylon filament in the mainland might induce more imports of nylon chips from Taiwan.