The European Commission has scrapped the anti-subsidy surcharge on Indonesian polyester texture filament yarn (PTY) as the alleged subsidy caused no injury to local industry, it was reported Thursday.

Quoting the Indonesian Association of Synthetic Fibre Producers, Asia Pulse said a probe by the EC found the subsidy on the PTY products from Indonesia was only 0.4 per cent, well below the threshold of three per cent.

The paper said the surcharge, which was brought in 11 months ago on petition from the International Committee of Rayon and Synthetics Fibres, had triggered a fall in European export orders.