India has announced the imposition of anti-dumping duties (ADD) ranging from 27 percent to 63 percent on plastic processing machinery imported from China and Taiwan. The move is aimed at protecting domestic manufacturers from cheap imports, ensuring fair competition, and promoting growth in India's plastic machinery sector amid rising demand.
A notification from India’s Ministry of Commerce & Industry states, “Both Dongguan Fu Chun Shin Plastic Machinery Manufacturer Co, Ltd, and Fu Chun Shin (Ningbo) Machinery Manufacturer Co, Ltd, based in China, will attract an ADD of 48 percent for the supply of plastic machinery, whether from Chinese territory or elsewhere. Similarly, companies such as Chen Hsong Machinery Co, Ltd, Chen Hsong Sales & Marketing (Shenzhen) Co, Ltd, Chen Hsong Sales & Marketing (Ningbo) Co, Ltd, Chen Hsong Machinery (Shenzhen) Co, Ltd, Foshan Shunde Chen De Precision Machinery Co, Ltd, and Foshan Shunde Chen De Plastic Machinery Co, Ltd, will face an ADD of 27 percent.”
Several other companies, including Yizumi Precision Molding Technology Co, Ltd, Yizumi High-Speed Packaging Technology Co, Ltd, Yizumi Precision Machinery (HK) Co, Ltd, and Yizumi Precision Machinery (Suzhou) Co, Ltd, have also been subjected to ADD. These companies will have to pay an ADD of 35 percent. Additionally, producers not listed above will face the highest ADD of 63 percent.
Interestingly, India’s designated authority – the Directorate General of Trade Remedies (DGTR) under the Ministry of Commerce & Industry – has exempted Husky Injection Molding Systems Shanghai Ltd and Huarong Plastic Machinery Co, Ltd from any duty levies. While the ADD on Chen Hsong Machinery Taiwan Co, Ltd is set at 39 percent, other producers from Taiwan will face a higher ADD of 53 percent.
Scope of productThe scope of production under consideration includes all types of plastic processing or injection moulding machines with a clamping force of no less than 40 tonnes and no more than 1500 tonnes. This scope covers machines in fully assembled form, semi-knocked down (SKD) form, completely knocked down (CKD) form, or a combination of SKD and CKD.
The Indian government has exempted certain categories of machines from the anti-dumping duty (ADD), including Blow moulding machines of specific grades, Vertical injection moulding machines, All-electric moulding machines meeting specific criteria, Multi-colour/multi-mould machinery for manufacturing footwear, and Rotary injection moulding machinery for manufacturing footwear.
Other exemptions from ADD include second-hand plastic processing machines, imports of standalone parts/components (other than those specified above), and imports of clamping/clamp units, with or without screws and barrels, machine base frames, and fabricated frames/covers.
RecommendationsThe recommendation to levy anti-dumping duty (ADD) was made by the Directorate General of Trade Remedies (DGTR) in March this year after it found that the aforementioned Chinese and Taiwanese companies were involved in unfair trade practices. Notably, the investigation was initiated and duly notified to all interested parties. Adequate opportunities were provided to the domestic industry, exporters, importers, and other stakeholders to submit relevant information regarding dumping, injury, and the causal link.
Upon initiating and conducting the investigation in accordance with the provisions of the Anti-Dumping Rules, the DGTR concluded that imposing ADD was necessary to counteract dumping and mitigate the resultant injury. Consequently, the authority recommended the imposition of ADD on imports of the subject goods from the concerned countries.
All the identified companies in China and Taiwan were given a fair opportunity to present their arguments and defend their case before the Indian authority. However, the DGTR found the responses received from these respondents to be unconvincing.
Based on its findings, the Indian authority recommended the imposition of ADD equal to the lesser of the dumping margin and the injury margin, to eliminate the harm caused to the domestic industry. Accordingly, the ADD was proposed as a percentage of the CIF (Cost, Insurance, and Freight) value of imports, to be imposed for a period of five years from the date of notification by the Central Government. This duty applies to all imports of the subject goods originating in or exported from China and Taiwan.
Background of the caseAn application was submitted by the Plastic Machinery Manufacturers Association of India (PMMAI) on behalf of Electronica Plastic Machines Ltd, Milacron India Pvt Ltd, Shibaura Machine India Pvt Ltd, and Windsor Machines Ltd to the Designated Authority. The applicants sought the initiation of an anti-dumping investigation concerning imports of Plastic Processing Machines (PPM) or Injection Moulding Machines from China and Taiwan.
Based on sufficient prima facie evidence provided by the domestic industry, the Authority issued a public notice dated March 29, 2024, initiating an investigation to determine the existence, extent, and impact of the alleged dumping of the subject goods originating in or exported from China and Taiwan. The investigation also aimed to recommend the appropriate amount of anti-dumping duty necessary to address the alleged injury to the domestic industry. Efforts to obtain comments from PMMAI and the applicant companies did not yield any positive responses.
DILIP KUMAR JHAEditor
dilip.jha@polymerupdate.com
