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Chinese importers of spandex are to be penalized after the Ministry of Commerce decided to take action against dumping of the product by overseas manufacturers.

The ministry told certain importers on Wednesday that they would lose a proportion of their customs deposits to offset damage to domestic producers.

The ministry declined to give the number of companies affected, but the measure target companies importing from Japan, Singapore, the Republic of Korea, the United States and Taiwan.

Among the foreign exporters and manufacturers charged with dumping are Opelontex of Japan, Invista (Singapore) Fibres Pte. Ltd., Hyosung Corporation, TongKook Corporation and Taekwang Industrial Co. of the Republic of Korea, and the Taiwan-based Formosa Asahi Spandex.

A ministry circular said the move followed a month-long investigation into these companies.

The circular said domestic importers would lose deposits equivalent to rates ranging from 5.09 to 61 percent.

All parties concerned are allowed to submit a written protest within 20 days to the Ministry of Commerce, which promised to give them serious consideration in line with the law.

Spandex, also known as elastane or polyurethane, is mainly used in producing clothes, swimming suits, sportswear, knitwear, underwear, socks and bandages for medical use.

(Xinhua News Agency May 25, 2006)