On the 21st of September 2018, ITAC initiated an investigation on the increase in the rate of customs duty on Acrylic resins classifiable under the tariff subheadings 3906.90.20 and 3208.20.90, from free of duty and 10% ad valorem respectively to 15% ad valorem.
As motivation for the application, the applicant Ferro Coating Resins cited the following reasons:
- There is stiff competition from cheap imported products originating from India and Taiwan. As a result there is pressure to match low priced imported products at margins that do not allow them to fully recover the costs.
- Currency fluctuations have major implications on the cost of imported raw materials which affect pricing in the local market.
- The competition with international companies is not on an even playing since they have larger plants with greater efficiencies for scale.
Interested parties have until the 19th of October to submit comments to ITAC.