India has raised the anti-dumping duty (ADD) three-fold on ‘polyethylene terephthalate (PET) resin having an intrinsic viscosity of 0.72 decilitres per gram or higher’ originating from Wankai New Materials Co. Ltd, China, due to the non-absorption of applicable import taxes imposed three years ago. The revision in the quantum of ADD will not impact other suppliers from China or any other country, as they have complied with the earlier order.
A notification issued by the Directorate General of Trade Remedies (DGTR) under the Union Ministry of Commerce and Industry, Government of India, reveals that the foreign trade regulator imposed an ADD of US$40.41 a tonne on PET resin having an intrinsic viscosity of 0.72 decilitres per gram or higher, originating or exported from Wakai New Materials Co. Ltd, China. The DGTR investigation concludes that Wankai New Materials Co. Ltd, China, failed to absorb the applicable ADD.
It is worth mentioning here that Wankai New Materials Co. Ltd, China, was expected to comply with the DGTR order dated March 27, 2021 which specified ADD of US$15.54 a tonne on PET resin. But the import price of PET resin does not indicate fully compliance. Therefore, the DGTR kept the applicable ADD on other producers unchanged. As per the revised notification dated August 29, 2024, the applicable ADD on Jiangyin Chengold Packaging Materials Co., Ltd. / China Prosperity (Jiangyin) Petrochemical al Co., Ltd currently stands at US$146.11 a tonne, while the same for Jiangsu Xingye Plastic Co. Ltd. / Jiangyin Xingyu New Material Co. Ltd. / Jiangsu Sanfame International Trade Co. Ltd., and Any producer other than producers above-mentioned, works out to US$60.92, and US$200.66 a tonne. These duties are applicable for a period of five years.
| Revised definitive anti-dumping duty on ‘Polyethylene terephthalate resin having an intrinsic viscosity of 0.72 decilitres per gram or higher’ originating or exported from China |
| Producer/s | Revised amount (US$) | Previous amount (US$) |
| Jiangyin Chengold Packaging Materials Co., Ltd. / China Prosperity (Jiangyin) Petrochemical Co., Ltd | 146.11 | 146.11 |
| Wankai New Materials Co. Ltd | 40.41 | 15.54 |
| Jiangsu Xingye Plastic Co. Ltd. / Jiangyin Xingyu New Material Co. Ltd. / Jiangsu Sanfame International Trade Co. Ltd. | 60.92 | 60.92 |
| Any producer other than producers above-mentioned | 200.66 | 200.66 |
Sources: Ministry of Commerce and Industry, and Polymerupdate Research
DGTR findingsThe investigation was initiated and notified to all interested parties and adequate opportunity was given to the domestic industry, exporters, importers and other interested parties to provide positive information on the aspect of absorption. Having initiated and conducted the investigation into absorption of duty by Wankai New Materials Co., Ltd., the authority is of the view that modification of anti-dumping duty applicable on Wankai New Materials Co., Ltd. is required. Therefore, the Authority recommends modification (three-fold increase) of anti-dumping duty on imports of the ‘PET resin having an intrinsic viscosity of 0.72 decilitres per gram or higher’ originating from Wankai New Materials Co., Ltd, China.
DGTR recommended modification of the quantum of duty imposed on imports of ‘polyethylene terephthalate (PET) resin having an intrinsic viscosity of 0.72 decilitres per gram or higher’ originating or exported from China. Having regard to the lesser duty rule, the Authority recommends modification of definitive anti dumping duty based on lesser margin of dumping and margin of injury, in respect of the exporter subject to the present investigation.
As regards exporters not subject to the present investigation, the ADD imposed earlier would continue. Accordingly, the definitive ADD on the import of the subject goods, originating in or exported from China, incorporates the above recommendation of the Authority in the instant anti-absorption investigation. Such duties shall continue for a period of five years from the date of issuance of Notification i.e. March 27, 2021.
Background of the caseThe case goes back to March 2021 when DGTR imposed ADD on Chinese producers and suppliers of PET resin having an intrinsic viscosity of 0.72 decilitres per gram or higher originating or exported directly from China. IVL Dhunseri Petrochem Industries Pvt Ltd and Reliance Industries Ltd (RIL) filed an application before the Designated Authority alleging non-absorption of ADD imposed on imports of polyethylene terephthalate resin originating in or exported from China and produced by Wankai New Materials Co., Ltd. or Zhejiang Wankai New Materials Co., Ltd.
The anti-dumping investigation concerning imports of PET Resin from China was initiated in December 2020. Following investigation, the authority recommended the imposition of ADD on imports of PET resin for a period of five years. The said duties are set to expire on March 26, 2026. The exports by Wankai New Materials Co., Ltd. were subject to a duty of US$ 15.54 a tonne, while the duties applicable to other exporters ranged from US$ 60.92 to US$ 200.66 a tonne.
Indian companies alleged that ‘PET resin having an intrinsic viscosity of 0.72 decilitres per gram or higher’ is subject to anti-dumping duty, as it is imported into India at such price or under such condition which is considered as absorption of existing ADD. These companies urged the designated authority to recommend modification in the applicable ADD to provide a level playing field for domestic producers. Indian players provided adequate proof for the satisfaction of the designated authority.
On the basis of the duly substantiated written application submitted by the applicants and having satisfied itself based on the prima facie evidence submitted by the applicants concerning absorption of the anti-dumping duties imposed on the exports from China by Wankai, the Authority initiated an anti-absorption investigation to determine the existence and effect of absorption of the ADD on exports of the product under consideration.
Scope of reviewThe application has been filed only against imports from Wankai. There is no bar under the Rules for conducting an investigation against a single exporter. As opposed to the submissions of the other interested parties, anti-absorption investigation is company specific which is evident from the word ‘an’ used prior to ‘anti-dumping duty’. Since there is different anti-dumping duty on different producers, the behaviour of each producer is different and cannot be clubbed together, DGTR said.
Absorption of anti-dumping dutyAccording to the notification, Wankai has absorbed the anti-dumping duty in force. The volume of imports from other exporters from the subject country is low and the price of imports has increased. The import price from Wankai has reduced in the current period of investigation as compared to the original period of investigation. While the cost of production has declined due to the decline in cost of raw material, the landed price has declined more than the decline in cost of production.
As opposed to the contention of the other interested parties, the applicants had provided prima facie evidence of absorption of anti-dumping duty in the application based on which the present investigation was initiated. Absorption has to be seen in US dollar (US$) and not in Indian rupee (INR) or Chinese yuan (CNY) as the exporter did not transact the business or export the product in INR or CNY and the customer did not make payment in INR or CNY. The entire transaction related to import is in INR.
As opposed to the contention of the other interested parties, EC in Sodium Cyclamate terminated the investigation because on denominating the prices in USD, they determined that there is no absorption. By contrast, in the present investigation, the imports from China are in USD which has not depreciated. With regard to product mix, the other interested parties did not claim product control number (PCN) in the original investigation and thus, the exporter cannot claim a difference in the product mix in the present investigation. The domestic industry has provided detailed calculation of injury margin for Wankai and the same is positive and significant.
The original investigation revealed that there are no known significant differences in the goods produced by the applicants and those exported from China. Both products have comparable characteristics in terms of parameters such as physical and chemical characteristics, manufacturing process and technology, functions and uses, product specifications, pricing, distribution and marketing and tariff classification. The two were found to be technically and commercially substitutable. Therefore, for the purpose of the present review, PET resin produced by the applicants are being treated as ‘like article’ to the subject goods imported from Wankai.
DILIP KUMAR JHA
Editor
dilip.jha@polymerupdate.com
