India has increased the anti-dumping duty (ADD) on polyethylene terephthalate (PET) resin imports from China’s Wankai New Materials Co. Ltd to curb the influx of cheap imports. PET resin, a widely used thermoplastic polymer, is primarily utilized in the textile industry. Wankai New Materials Co. Ltd contributes 87 percent of India’s total PET imports. Notably, the anti-dumping duty on PET imports from other Chinese companies and other countries remains unchanged.
According to a notification issued by India’s Ministry of Commerce & Industry, the anti-dumping duty on PET imports from Wankai New Materials Co Ltd has been raised to US$ 40.41 a tonne with immediate effect, a substantial increase from US$ 15.54 a tonne fixed earlier. The Indian government revised its own March 2021 notification to revise the ADD levy on Wakai New Materials Co Ltd. India first levied ADD on PET resin imports in March 2021 to the tune of US$ 15.54 – 200.66 a tonne to cap illegal dumping.
The Indian government found in its investigation that several Chinese companies have been dumping cheap PET to Indian consumers at a price lower than the prevailing market price in the domestic market. The cheap imports have been causing severe injury to Indian producers and therefore, needs to be considered. The matter refers to PET resin having an intrinsic viscosity of 0.72 decilitres per gram or higher (bottle-grade PET resin, excluding recycled PET resin), originating in, or exported from China and imported into India.
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 full 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.
| India’s anti-dumping duty levy on Polyethylene Terephthalate (PET) resin having an intrinsic viscosity of 0.72 decilitres per gram or higher |
| Country of exports | Producer | Amount (US$/tonne) |
| China | Jiangyin Chengold Packaging Materials Co. Ltd. / China Prosperity (Jiangyin) Petrochemical Co, Ltd. | 146.11 |
| China | Wankai New Materials Co. Ltd. | 40.41 (15.54) |
| China | Jiangsu Xingye Plastic Co. Ltd. / Jiangyin Xingyu New Material Co. Ltd. / Jiangsu Sanfame International Trade Co. Ltd | 60.92 |
| China | Any producer other than producers mentions at serial numbers 1, 2 and 3 above | 200.66 |
| Any country other than China | Any | 200.66 |
| China | Any | 200.66 |
Source: Ministry of Commerce and Industry, Government of India
Earlier notification“The designated Indian authority in its final findings has come to the conclusion that imposition of anti-dumping duty is required to offset the injury to the domestic industry caused by the dumped imports of subject goods from the subject country and has recommended imposition of definitive anti-dumping duty on imports of the subject goods, originating in or exported from the subject country and imported into India,” the earlier notification reads.
Now, therefore, the Central government, after considering the aforesaid final findings of the designated authority, hereby imposes an anti-dumping duty on PET resins at the rate equal to the injury caused. The anti-dumping duty imposed under this notification shall be levied for a period of five years (unless revoked, superseded or amended earlier) from the date of publication of this notification in the Official Gazette, i.e. March 2021, and shall be payable in Indian currency.
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.
Market fundamentalsIndia PET resins market was valued at 1.23 million tonnes in 2024 and is expected to reach 1.74 million tonnes by 2030, with a compounded annual growth rate (CAGR) of 6.2 percent. PET Is a thermoplastic polymer resin that belongs to the polyester family. In India, PET has emerged as the top choice in the packaging sector due to its exceptional rigidity, eco-friendly attributes, and recyclable nature.
The demand for PET in the packaging of food and beverages has seen a significant rise, especially after the sudden outbreak of the Covid-19 pandemic which outburst in Wuhan, China, and gradually spread throughout the world in the year 2000. The surge in demand cab be attributed to the increasing awareness of hygiene, leading to a greater procurement of disposable and packaged items in order to minimise the risk of infection. Furthermore, in the rapidly expanding Indian pharmaceutical sector PET bottles have gained preference over aluminium and glass packaging due to their high-quality standards and safety measures. This trend is expected to further boost the demand for PET in the visible future.
DILIP KUMAR JHA
Editor
dilip.jha@polymerupdate.com
