India May Impose Anti-Dumping Duty on Chinese PET Resin

India may impose anti-dumping duty on the imports of Polyethylene Terephthalate (PET Resin) originating in or exported from China based on an application led by IVL Dhunseri Petrochem Industries Private Limited and Reliance Industries.

The Directorate General of Trade Remedies (DGTR) has recommended anti-dumping duty of $15.54-200.66 per MT of the imported product for five years.

PET resin is used in textiles, plastic bottles, tires, undersea cables and 3-D printing, among others.

“The Authority recommends imposition of anti-dumping duty equal to the lesser of margin of dumping and the margin of injury so as to remove the injury to the domestic industry,” DGTR said in a notification.

DGTR can only recommend the duty. The finance ministry takes a final call on imposing it.

As per the notification, the petitioners said that India is the single largest market for Chinese exporters and the share of exports to India in the total exports from China increased to 10% in April-June, 2019 from 5% in April-September, 2018.

“The exports from China to India are increasing at a much faster pace than those to third countries. The increasing importance of India as a market itself highlights threat of material injury,” they said, according to the notification.

While noting that the imports have increased at a “rapid rate” DGTR said that there are significant surplus capacities in China which are expected to increase further and that India, being the largest export market, is an important one for the exporters especially as other markets such as the US, Canada, Brazil and Argentina may be closed due to imposition of trade remedial measures.

The authority said that the imports entering the domestic market at such prices are likely to have a further suppressing or depressing effect as there is existence of a threat of further injury to the domestic industry.

Source: Economic Times